Market Commentary: Averages Recover Morning Lows Then DOW Plummets Triple Digits

May 20th, 2014
in Gary's blogging, midday post

Written by

Midday Market Commentary For 05-20-2014

By noon the averages had moved off their session lows to have recovered one-half of their losses, however The $RUT stubbornly refuses to rise above -1.10% losses and that trend is what investors are most interested in.

At 12:01 the averages took a serious dive to 'test' the morning lows, signaling increased market weakness scrutiny by worried investors.

Follow up:

It is going to be interesting to see if all of these 'bearish' reports flooding the blogosphere are going to actually make the markets more bullish like they have done in the past decades.

Major U.S. benchmarks approach bull-bear tipping point

CINCINNATI (MarketWatch) - The large-cap U.S. benchmarks are acting well technically despite recent Treasury-market cross currents, and the small-caps' ongoing sluggishness.

Nonetheless, the current backdrop has approached a tipping point, and the bull-bear tension is detailed below.

The short term indicators are leaning towards the hold side at the midday. The all important signs of reversal, up or down, have not been observed so we are mostly, at best, neutral and conservatively holding. The important DMA's, volume and a host of other studies have not turned and that is not enough for me to start shorting. The SP500 MACD has turned down, but remains above zero at 5.03. I would advise caution in taking any position during this volatile transition period although shows a 48 % buy. (Hard to take seriously.) members' sentiments are 65 % bearish.

If you would like to get advanced buy/sell tweets, sign-up in the column to the right of this post by clicking on the 'Follow' button. Write me with suggestions and I promise not to bite.

The DOW at 12:15 is at 16404 down 108 or -0.65%.

The SP500 is at 1874 down 11 or -0.56%.

SPY is at 187.77 down 0.96 or -0.50%.

The $RUT is at 1097 down 17 or -1.53%.

NASDAQ is at 4104 down 22 or -0.53%.

NASDAQ 100 is at 3608 down 8 or -0.21%.

$VIX 'Fear Index' is at 12.66 up 0.24 or 1.93%. Neutral Movement

(Follow Real Time Market Averages at end of this article)

The longer trend is up, the past months trend is sideways, the past 5 sessions have been net negative and the current bias is negative.

How Oil Really Gets Priced

WTI oil is trading between 102.41 (resistance) and 101.72 (support) today. The session bias is positive and is currently trading down at 102.26.

Brent Crude is trading between 109.99 (resistance) and 109.11 (support) today. The session bias is positive and is currently trading down at 109.84.

Gold rose from 1286.09 earlier to 1296.71 and is currently trading up at 1295.90. The current intra-session trend is positive.

Analysts forecast a corrosive year for copper prices

Dr. Copper is at 3.147 falling from 3.174 earlier.

The US dollar is trading between 80.17 and 80.02 and is currently trading up at 80.09, the bias is currently sideways and volatile.

Real Time Market Numbers



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Written by Gary


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