Mid-Day Market Commentary For 07-27-2012
At noon the markets have leveled off and volume has reached anemic levels as investors are taking a breather. Most likely they are wondering if all this bullishness has been pumped up to far by BS politicians like Draghi. We know the German’s response was ‘nein’ to his proposals and that alone should have driven the markets back down but didn’t. Then the ‘not-so-good’ US news has inflated the hot air balloon a bit keeping the markets inflated as well.
The SP500 has reached a double top of sorts, the ‘ultimate Black Cross of Doom’ where the 50 day MA crosses the 200 day MA has happened on the DOW, $RUT and several other important indexes painting a very bearish outlook for the market.
Personally, all the signs point towards a market that has run it course and is out of steam.
Too little, to late.
The final reading of the Reuters/University of Michigan consumer-sentiment index showed confidence among U.S. consumers increased to 72.3 in late July from 72.0 earlier in the month.
The DOW at noon is at 12993 up 105 or 0.82%.
The 500 is at 1375 up 15 or 1.12%.
The $RUT is at 789.09 up 12 or 1.54%.
SPY is at 137.67 up 1.51 or 1.11%.
The trend is positive and the current bias is up.
WTI oil is at 90.03 trading between 89.20 and 90.25 and the bias is neutral.
Brent crude is at 106.12 trading between 105.25 and 106.50 and the bias is neutral.
Gold is at 1618 trading between 1611 and 1628 with a neutral bias.
Dr. Copper is at 3.43 up from 3.38 earlier.
Earlier this morning the USD tumbled from 83.05 to 82.44 earlier and recovered to 82.53 but selling pressure still remains with the trend being neutral for now.
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Written by Gary