Written by Gary
Midday Market Commentary For 05-16-2014
The large caps dipped down to the 50 DMA and melted up to new session highs albeit remaining flat on falling volume. The $RUT is hovering just above the 1090 support which some say would be a market game changers should it close below that line.
By noon the averages were trading quietly in a sideways fashion and most likely this is how were will see the session, baring any war in the Ukraine of course.
The financial makeup, in my opinion of course, is that there are some very weak spots that have very deep chasms below them should the right circumstances occure.
For the second time yesterday, I heard that the Fed thinks they have the Banking system covered for a 25% market drop. The question I had to pose to myself was: “Why did they feel they had to do that, and what would happen there was a 36% drop on the Banking Index?” – Marty Chenard
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 4.97. I would advise caution in taking any position during this volatile transition period although Barchart.com shows a 48 % buy. (Not sure I completely buy into this.) Investing.com members’ sentiments are 63 % bearish.
The markets are still susceptible to climbing on ‘Bernankellen’ vapor, use caution!
If you would like to get advanced buy/sell tweets, sign-up in the column to the right of this post by clicking on the ‘Follow‘ button. Write me with suggestions and I promise not to bite.
The DOW at 12:00 is at 16454 up 6 or 0.04%.
The SP500 is at 1872 up 1 or 0.04%.
SPY is at 187.39 up 0.03 or 0.01%.
The $RUT is at 1093 down 3 or -0.29%.
NASDAQ is at 4061 down 8 or -0.20%.
NASDAQ 100 is at 3561 down 4 or -0.12%.
$VIX ‘Fear Index’ is at 12.83 down 0.34 or -2.58%. Bullish 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 mixed and the current bias is flat and trending sideways.
WTI oil is trading between 102.16 (resistance) and 101.40 (support) today. The session bias is positive and volatile and is currently trading down at 102.04.
Brent Crude is trading between 110.01 (resistance) and 108.90 (support) today. The session bias is positive and is currently trading down at 109.89.
Gold fell from 1298.45 earlier to 1287.87 and is currently trading down at 1293.40. The current intra-session trend is sideways and volatile.
Dr. Copper is at 3.142 falling from 3.158 earlier.
The US dollar is trading between 80.18 and 80.03 and is currently trading down at 80.08, the bias is currently sideways.
Real Time Market Numbers
To contact me with questions, comments or constructive criticism is always encouraged and appreciated:
Written by Gary