Midday Market Commentary For 04-17-2013
Markets checked their slide about 11 am at an interesting point. The support of the SP500 is about 1550 to 1544 and it is substantial. If one is to support the bears we would have to see this support broken and it doesn’t appear today will be the one. Although a test of today’s lows would be in order.
The bulls, on the other hand, see the resistance at 1575 as the one to beat with a further one at 1593. Personally it makes more sense to test the higher one first, but then I am guessing like all of the other pundits.
By noon several up line trends had been broken, bearish and several major gaps left over by the ascending markets had been filled.
Cyprus and the European Union are still very much in the news as gold smarts from its hit. I believe we haven’t seen the ‘big fall’ yet as testing of the recent highs looks promising. Is today a good day to do a little swing trading – ummm, maybe, but not for me as I am way to conservative.
Every scheme in Europe than can be rigged has been or is being rigged and, in the end, it will only be the fools that are left in this game. It is not the greater fools either but the mandated fools who take directions from Brussels who takes their directions from Berlin.
We cannot emphasize enough the great risk that anyone takes now by investing in anything in Europe. You can ignore liabilities, you can play pretend and not count liabilities but in the end they are still there and the losses must be finally acknowledged.
Gold gave you a head’s up.
The DOW at 12:15 is at 14593 down 164 or -1.11%.
The SP500 is at 1547 down 27 or -1.75%.
SPY is at 154.64 down 3 or -1.77%.
The $RUT is at 902.28 down 21 or -2.27%.
NASDAQ is at 3193 down 72 or -2.20%.
NASDAQ 100 is at 2771 down 66 or -2.35%. (A lot of analysts are currently watching the 100.)
The longer trend is up, the past months trend is bullish, the past 5 sessions have been neutral to bearish and the current bias is bearish.
WTI oil is trading between 89.00 and 86.75 today. The session bias is bearish and is currently trading down at 86.87.
Brent crude is trading between 100.52 and 97.80 today. The session bias is bearish and is currently trading down at 97.93.
Gold rose from 1320.57 earlier to 1393.15 and is currently trading down at 1385.80.
Dr. Copper is at 3.19 falling from 3.32 earlier.
The US dollar is trading between 81.78 and 82.69 and is currently trading up at 82.62, the bias is currently bullish.
** RRR = Risk Reward Ratio
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Written by Gary