Written by Gary
Closing Market Commentary For 05-23-2014
Well thanks to the HFT algo computers we saw the markets squeak up to a new historical closing high for the SP500 at 1900.54. The NASDAQ stopped at a resistance of 4185, as well as the $RUT at 1126.
By 4 pm the volume was anemic because many investors and traders left early in the day for a long weekend and we will not see them until Tuesday probably. Have a safe weekend.
The $RUT remains in a sideways channel started in the first week of April this year, but closing above the 200 DMA for the first time since May 6 th. The SP500 closed just below it all-time historical high at 1902 and didn't even try to push above, not very bullish. The DOW closed up, but nowhere near its historical closing high while the $VIX 'complacency' meter closed at it lowest point since the week of February, 2007.
Now is the time to be really nervous as it would only take a minor hiccup to cause the markets to decline.
Investors pulled money out of equity funds last week, plugging it into bonds and cash as Treasury yields tumbled.
The short term indicators are leaning towards the hold side at the close. 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 up, and remains above zero at 6.14. I would advise caution in taking any position during this volatile transition period although Barchart.com shows a 48 % buy. (Was 24% sell at the opening. Talk about short term indicators!) Investing.com members' sentiments are 69 % bearish.
The markets are still susceptible to climbing on 'Bernankellen' vapor, use caution!
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The DOW at 4:00 is at 16606 up 63 or 0.38%.
The SP500 is at 1900 up 8 or 0.42%.
SPY is at 190.31 up 0.76 or 0.40%.
The $RUT is at 1126 up 12 or 1.11%.
NASDAQ is at 4186 up 31 or 0.76%.
NASDAQ 100 is at 3677 up 26 or 0.73%.
$VIX 'Fear Index' is at 11.36 down 0.67 or -5.57%. Neutral Movement
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The longer trend is up, the past months trend is sideways, the past 5 sessions have been positive and the current bias is positive.
WTI oil is trading between 104.49 (resistance) and 103.65 (support) today. The session bias is positive and is currently trading down at 104.40.
Brent Crude is trading between 110.66 (resistance) and 110.25 (support) today. The session bias is positive and volatile and is currently trading up at 110.58.
Gold fell from 1295.67 earlier to 1287.01 and is currently trading up at 1292.90. The current intra-session trend is sideways, but trending up.
Dr. Copper is at 3.163 rising from 3.135 earlier.
The US dollar is trading between 80.49 and 80.28 and is currently trading up at 80.44, the bias is currently elevated with a sideways trend.
Real Time Market Numbers
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Written by Gary