Market Commentary: SP500 Melts Back Up Close To Friday's Closing Numbers

June 23rd, 2014
in Gary's blogging, market close

Written by

Closing Market Commentary For 06-23-2014

Action on the market front was so slow this afternoon (I know there is a joke here somewhere . . )! Anemic volume, lackluster action and really I do not believe investors have come back from the weekend.

By 4 pm everyone in the office yelled hallelujah and ran for the doors. The SP500 bumped up against Friday's closing numbers after melting up from the 1 pm lows and backtracked.


Follow up:

It will be interesting to see if tomorrow is an up day or continue to trade sideways.

The Market Has Never Been More Fearful Of An Extreme Event

"There's something going on in derivatives land," is the warning from ADM's Andy Ash and as Paul Mylchreest notes the relationship between VIX and SKEW suggests the options market is pricing in the possibility of a major market event.

The process enables professionals to maintain the illusion of calmness in VIX while hedging their positions (as they attempt to unwind as we have shown).

Whether this 'event' is a crash or melt-up is historically unclear but given the taper and the trend of the last few years, we suspect the former more likely that the latter.

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 flat, but remains above zero at 17.05. I would advise caution in taking any position during this volatile transition period although Barchart.com shows a 0 % hold. Investing.com members' sentiments are 60 % bearish and Investors Intelligence sets the breath at 68.5 % bullish with the status at Bear Correction.

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 4:00 is at 16937 down 10 or -0.06%.

The SP500 is at 1963 down 0.26 or -0.01%.

SPY is at 195.81 down 0.06 or -0.03%.

The $RUT is at 1185 down 3 or -0.29%.

NASDAQ is at 4369 up 1 or 0.01%.

NASDAQ 100 is at 3805 up 3 or 0.07%.

$VIX 'Fear Index' is at 10.98 up 0.13 or 1.20%. Neutral Movement

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

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

How Oil Really Gets Priced

WTI oil is trading between 107.36 (resistance) and 105.91 (support) today. The session bias is depressed and sideways and is currently trading up at 106.03.

Brent may top 9-month record

Brent Crude is trading between 115.63 (resistance) and 113.87 (support) today. The session bias is depressed and sideways and is currently trading up at 114.02.

Maybe I'm Wrong - Justifying $2,000+ Gold by Jeffrey Dow Jones

Gold fell from 1318.06 earlier to 1310.62, reversed direction, eased up to 1319.20 and is currently trading up at 1318.20. The current intra-session trend is sideways and volatile.

Analysts forecast a corrosive year for copper prices

Dr. Copper is at 3.140 rising from 3.107 earlier.

The US dollar is trading between 80.46 and 80.31 and is currently trading up at 80.34, the bias is currently sideways and volatile.

Real Time Market Numbers

Leading Stock Quotes powered by Investing.com

To contact me with questions, comments or constructive criticism is always encouraged and appreciated:

gary@econintersect.com

Written by Gary









Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.















 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved