Markets correction Is Over, For Another Day Anyway

Closing Market Commentary For 06-05-2012

Whoopee, green all the way today. Celebrate while you can as it isn’t going to last I am afraid. The signs are there, the tea-leaves are aligned and the charts have confirmed the decline already in progress. Even Facebook has taken a dump, closing today at 25.85.

The bad news is that the volume was low while investors took a back seat and sat on their hands waiting for the end of the weeks financial reports. Tomorrow the Beige Book Economic Survey, Initial Claims and USD Consumer Credit (APR) on Thursday and USD Wholesale Inventories (APR) and USD Annual Revisions: Trade Balance on Friday. I would not give any credence to the rise in today’s markets – too little to late.

Gold is at 1617 with a neutral bias. WTI oil is at 4.27 being as high as 84.82 this afternoon. Brent crude was at 99.04 this afternoon and is currently trading in the 98.75 area.

The DOW is at 12127 up 26.49 or 0.22% (200 day MA is 12263, support is at 12288), the 500 is at 1285 up 7.32 or 0.57% (200 day MA is 1285, support is at 1288), the $RUT is at 746 up 8.85 or 1.20% (200 day MA is 756.91, support is at 746) and SPY is at 129 up 1.25 or 0.79% (200 day MA is 12874, Support is at 129.20). The trend is neutral and the current bias is up.

You can see the ‘Black Crosses’ that have already formed and the ones about to.

The SP500 at the close.

The $RUT at the close.

The DOW at the close.

The Indexes at the close.

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Written by Gary