So far this week, we have had a strong solid rally on Monday with record highs for the DOW and S&P, on Tuesday, the NASDAQ gave back a good portion of what it gained on Monday, as Money Managers took advantage of the rally to lighten up on their Tech Holdings, cutting short what could have been a nice market run. This brings us to Wednesday, which was a complete aberration of any kind of normal trading
day. First, we had the NASDAQ regain what it lost on Tuesday, with the help of the Volatile Biotech sector, which is up about 9% in 3 days on NO NEWS. Next, we have the S&P off just 1 pt, the equivalent of just 8 DOW points, while the DOW itself, was off over 57 pts, then we have the advance/decline line showing losing stocks swamping winners by a 19/10 margin, mainly due to tumbling Oil prices. So this week we have had one up day, one down day and now, one thoroughly mixed day and where do we go from here is anyone’s guess.
As you might guess the Technical picture is a mess, with the DOW and S&P rolling over and the NASDAQ pointing up and the Russell 2000 and Transportation Index approaching oversold territory. Unfortunately, the absence of any news, good or bad, has the markets being whipped around by Momentum Programs, which would explain some of the oddball trading. The good news is that this will end and hopefully not in a bad way. Overnight, the Global markets traded slightly lower and in early trading today the DOW is off about 20pts.
The Yield on the 10 Yr Yield in 2.15%, the Dollar is lower and Commodities are slightly higher, with Oil ticking at $42.80 and Gold trading at $1251 and Copper back above $2.60.
Finally we have some news today, with the release of the Weekly Jobless Claims at 8:30 and the May Leading Indicators out at 10:00. Also, we are starting to see some of the “Details” of the Senate’s Health Care Plan, so we will have something else to do today. .
Today’s Early Markets
DOW Futures— down 20.00 London – down 43.58
S&P – down 300 DAX – down 44.56
GOLD—$1251 August Nikkei — down 28.84
OIL— $42.70 August HangSeng — down 20.78
DOW RESISTANCE 21,520 S&P RESISTANCE 2440
DOW SUPPORT: 21,350 S&P SUPPORT: 2430/2425
$NASDAQ RESISTANCE 6250
$NASDAQ SUPPORT 6200