Market Commentary: SP500 melts Up To New High On Low Volume

Written by Gary

Midday Market Commentary For 07-22-2014

The SP500 made a new high (1986.24), but close enough to call it a double top by some chartists. Markets have remained near their highs on low, but falling volume.

By noon investors are once again unsure what Mr. Market is going to do next and many, once again, are going to sit on their collective hands as a cautionary position.

The medium 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 down, but remains above zero at 9.96. I would advise caution in taking any position during this uncertain period.

Barchart.com shows a 88 % buy. (Been at 88% for the last 8 sessions, I think their meter is broken) Investing.com members’ sentiments are 60 % bearish and Investors Intelligence sets the breath at 66.6 % bullish with the status at Bear Correction. (Chart Here )

StockChart.com NYSE Bullish Percent Index ($BPNYA) is at 71.47. (Chart Here)

StockChart.com S&P 500 Bullish Percent Index ($BPSPX) is at 82.60. (Chart Here)

StockChart.com Consumer Discretionary ETF (XLY) is at 67.52. (Chart Here)

Chris Ciovacco says, “As long as the consumer discretionary ETF (NYSEARCA:XLY) holds above 67.06, all things being equal, it is a good sign for stocks and the U.S. economy.” (Actually the support looks to be in the 66.88 range)

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 17122 up 70 or 0.41%.

The SP500 is at 1985 up 11 or 0.58%.

SPY is at 198.43 up 1.08 or 0.55%.

The $RUT is at 1160 up 13 or 1.16%.

NASDAQ is at 4461 up 36 or 0.82%.

NASDAQ 100 is at 3962 up 28 or 0.71%.

$VIX ‘Fear Index’ is at 11.94 down 0.86 or -6.71%. Neutral Movement

(Follow Real Time Market Averages at end of this article)

The longer trend is up, the past months trend is positive, the past 5 sessions have been sideways and the current bias is positive.

How Oil Really Gets Priced

WTI oil is trading between 10.3.37 (resistance) and 102.37 (support) today. The session bias is negative and is currently trading down at 102.67.

Brent Crude is trading between 108.40 (resistance) and 107.50 (support) today. The session bias is negative and is currently trading down at 107.72.

Gold prices sink as worries over Europe that drove prices up last week dissipate

Gold rose from 1302.56 earlier to 1315.77, reversed direction and is currently trading down at 1307.40. The current intra-session trend is negative.

Dr. Copper is at 3.211 falling from 3.233 earlier.

The US dollar is trading between 80.92 and 80.61 and is currently trading up at 80.87, the bias is currently positive and volatile.

Real Time Market Numbers

To contact me with questions, comments or constructive criticism is always encouraged and appreciated:

[email protected]

Written by Gary