Market Summary ;
After a solid, but low volume, Janet Yellen inspired 3 day rally, the markets ran into a bit a profit taking yesterday, but by the end of the day, the Indexes closed little changed so no harm was done. It seems that with the U.S. and Global Economies, growing, the FED, BOE, ECB and BOJ all not in a hurry not to raise rates, leaves Investors with few choices as to where to put their money. The reality is that if you want any kind of returns, you either have to take a chance with very risky Emerging Markets, or go with the less riskier Equity markets of the U.S., U.K., Eurozone and Japan and judging by rising Equity prices across the Globe, Money Managers have already made their choice.
Technically all the Indexes are overbought and extended and they all could use a break, so a correction of some sort should be expected at any time. However, unless you have to chase prices higher, I would be patient and wait for what you want to buy to come down. Normally, every market will give you an entry point, so if you are patient and only buy at the right price, you will be rewarded.
Overnight the Global markets were mixed with China up, Japan down, Europe up and so far in the pre-mkt the DOW is higher on good JNJ earnings, but the S&P and NASDAQ are slightly lower. The Yield on the 10 Yr is off a tick to 2.30%, the Dollar is lower as Rates sink lower, while Commodities are higher, with Oil testing Resistance at $46.50 and Gold trading at $1237.
Today we have the June Import Prices at 8:30am, then the July Home Builders Index at 10:00 and after the bell today, the API Oil Inventory report is released. We also have earnings from JNJ, UNH, GS and IBM all DOW components, so they could help move the markets one way or another. Overall, the markets have had
a good run, so expect to see some selling, but be prepared to take advantage of any opportunities that come your way.
Today’s Early Markets
DOW Futures— up 10.00 London – up 5.58
S&P – up 100 DAX – down 58.56
GOLD—$1235 August Nikkei — down 119.84
OIL— $46.20 August HangSeng — up 54.78
DOW RESISTANCE 21,680 S&P RESISTANCE 2470
DOW SUPPORT: 21,530 S&P SUPPORT: 2450
$NASDAQ RESISTANCE 6330
$NASDAQ SUPPORT 6270