Written by Gary
Midday Market Commentary For 05-15-2014
The $RUT dipped below its 1090 support and the question now will it close below that line. This could have serious ramifications regarding the rest of the markets that are stumbling deeper into the red as the economically-sensitive stocks post heavy losses.
By noon the averages had all dropped into the minus 1 percent plus, but with bullish signs that may may save the day.
But, then again . . .
As the Dow tumbles back into the red for 2014 and the Russell firmly into correction territory, all eyes are focused on the ‘rotational support’ for the S&P 500
. . . and it appears to be faltering quickly. As BofA notes, a break below the S&P’s 50-day moving average is key… and we just did.
What is just as worrisome is the break of the all-supportive USDJPY one-year-trend to 2-month lows..
And, then again . . . Things are NOT looking rosy on Wall Street.
NEW YORK (AP) – The stock market is down sharply after disappointing economic news and a couple bad earnings reports from retailers. The Standard & Poor’s 500 index slid 21 points, or 1.2 percent, to 1,867 just before 12 p.m. Eastern Time Thursday.
The Dow Jones industrial average dropped 176 points, or 1.1 percent, to 16,437. The Nasdaq composite lost 52 points, or 1.3 percent, to 4,048. Wal-Mart Stores fell $1.81 to $76.93 after it reported a lower profit in its most recent quarter and warned that things don’t look much better this quarter.
The company blamed a harsh winter. Department store operator Kohl’s also fell sharply after reporting a drop in quarterly earnings.
The short term indicators are leaning towards the hold side at the midday. The all important signs of reversal, up or down, have not been observed so we are mostly, at best, neutral and conservatively holding. The important DMA’s, volume and a host of other studies have not turned and that is not enough for me to start shorting. The SP500 MACD has turned flat, but remains above zero at 5.56. I would advise caution in taking any position during this volatile transition period although Barchart.com shows a 56 % buy. (Could be right.) Investing.com members’ sentiments are 66 % bearish.
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The DOW at 12:15 is at 16424 down 191 or -1.15%.
The SP500 is at 1964 down 25 or -1.32%.
SPY is at 186.59 down 2.44 or -1.30%.
The $RUT is at 1084 down 19 or -1.70%.
NASDAQ is at 4041 down 59 or -1.44%.
NASDAQ 100 is at 3548 down 45 or -1.26%.
$VIX ‘Fear Index’ is at 13.62 up 1.45 or 11.91%. Neutral Movement
(Follow Real Time Market Averages at end of this article)
The longer trend is up, the past months trend is sideways, the past 5 sessions have been sideways and the current bias is negative.
WTI oil is trading between 102.24 (resistance) and 101.31 (support) today. The session bias is negative and is currently trading up at 101.48.
Brent Crude is trading between 109.63 (resistance) and 108.83 (support) today. The session bias is negative and is currently trading up at 109.00.
Gold fell from 1306.63 earlier to 1291.32 and is currently trading up at 1299.60. The current intra-session trend is volatile and negative.
Dr. Copper is at 3.150 falling from 3.170 earlier.
The US dollar is trading between 80.40 and 79.97 and is currently trading up at 80.10, the bias is currently negative and volatile.
Real Time Market Numbers
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Written by Gary