Market Commentary: Markets Recover 80% Of Morning Losses on Anemic Volume

July 28th, 2014
in Gary's blogging, midday post

Written by

Midday Market Commentary For 07-28-2014

Morning losses, as expected, were minimized as the noontime approached and the averages generally recovered somewhat.

By noon the markets seemed to want to melt down again as volume hit anemic levels. Volatility does not appear to become an issue today, for now the bear is in charge.

Follow up:

The medium 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 8.85. I would advise caution in taking any position during this uncertain period. members' sentiments are 53 % bearish and Investors Intelligence sets the breath at 66.9 % bullish with the status at Bear Correction. (Chart Here ) NYSE Bullish Percent Index ($BPNYA) is at 70.57. (Chart Here) S&P 500 Bullish Percent Index ($BPSPX) is at 82.40. (Chart Here) Overbought / Oversold Index ($NYMO) is at -31.92. (Chart Here) Consumer Discretionary ETF (XLY) is at 66.72. (Chart Here)

Chris Ciovacco says, "As long as the consumer discretionary ETF (NYSEARCA:XLY) holds above 67.06, all things being equal, it is a good sign for stocks and the U.S. economy." (Actually the support looks to be in the 66.88 range)

The markets are still susceptible to climbing on 'Bernankellen' vapor, use caution!

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 16929 down 31 or -0.18%.

The SP500 is at 1974 down 5 or -0.23%.

SPY is at 197.30 down 0.42 or -0.21%.

The $RUT is at 1135 down 9 or -0.82%.

NASDAQ is at 4432 down 18 or -0.40%.

NASDAQ 100 is at 3956 down 9 or -0.23%.

$VIX 'Fear Index' is at 13.08 up 0.39 or 3.07%. 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 sideways and the current bias is negative.

How Oil Really Gets Priced

WTI oil is trading between 102.09 (resistance) and 100.91 (support) today. The session bias is neutral and is currently trading up at 101.63.

Brent Crude is trading between 108.10 (resistance) and 107.02 (support) today. The session bias is positive and is currently trading up at 107.61.

Gold fell from 1311.50 earlier to 1304.07 and is currently trading down at 1305.40. The current intra-session trend is sideways.

Dr. Copper is at 3.241 rising from 3.226 earlier.

The US dollar is trading between 81.14 and 81.06 and is currently trading up at 81.10, the bias is currently sideways and quiet.

Real Time Market Numbers

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

Written by Gary

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