The 500 gained 11 points in a matter of minutes after the J.P. Morgan announcement. The green volume wasn’t all that exceptional, but it did last a while giving credence that “someone” was buying and we should at least pay attention. I would prefer to see moderate volume, which this could very well be, but this has to continue to be a real bull run.
The reality is that this has to be confirmed tomorrow as the “real thing” by continuing the advance on moderate volume. This also has the makings of a classic run at a top although I would have preferred to see a shooting-star candle. Really the question is what are FaBoyz going to do with it because the volume looks suspiciously weak? It is more likely some of the cash crowd with cash burning holes in their pocket and made an impulse buy.
SPY closed at 139.16, SSO closed at 57.50 and FAS closed at 103.11. Gold dropped to 1661 and recovered to 1670 while oil remained elevated along current levels for the day. I would have expected the oils to react, but they didn’t. The USD barely reacted by dropping to 80.40 and returning to 80.70 a few minutes later. This doesn’t bode well for this market to continue any advancement and a small correction, at least, is in order.
The 500 at close. Red line represents resistance.
The DOW at the close. Red line represents resistance.
The Indexes at the close.
Last post of the day. Any guesses where the 500 will be in the morning. You know the old saying, To good to be true, it probably isn’t. In this case volume will be the story teller.
Written by Gary