Midday Market Commentary For 04-18-2013
By 11 am the market got tired and started to melt towards the morning lows on falling volume.
By 12:30 the averages were trading is a sideways fashion in a narrow range and not much news to direct the markets one way or the other as the small caps lead the way down.
Cyprus and the EU are still very much in forefront of savvy investors minds.
The market largely ignored the current conditions and the S&P 500 (SPY) marched on to new highs. But the inter-market behavior is still not favoring risk on behavior, and the economic data coming out is weak and mostly below expectations.
It is usually not good for the general market if the defensive parts outperform the broad indexes. And that is happening for some time now . . .
Weak economic data and poor intermarket behavior point to the elevated risk of an intermediate correction. With the indexes near all-time highs, and an already mature uptrend in its sixth month, a correction would not be that surprising.
The DOW at 12:30 is at 15553 down 65 or -0.44%.
The SP500 is at 1543 down 8 or -0.53%.
SPY is at 154.39 down 0.72 or -0.46%.
The $RUT is at 902.97 down 3.81 or -0.42%.
NASDAQ is at 3177 down 28 or -0.86%.
NASDAQ 100 is at 2751 down 31 or -1.12%. (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 bearish and the current bias is neutral.
WTI oil is trading between 88.14 and 86.35 today. The session bias is positive and is currently trading down at 87.10.
Brent crude is trading between 99.33 and 97.56 today. The session bias is negative and is currently trading up at 98.33.
Gold rose from 1338.65 earlier to 1401.59 and is currently trading down at 1388.226.
Dr. Copper is at 3.18 falling from 3.19 earlier.
The US dollar is trading between 82.74 and 82.46 and is currently trading down at 82.48, the bias is currently bearish.
** RRR = Risk Reward Ratio
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Written by Gary