Market Summary ;
After a failed rally attempt on Monday, the markets opened lower yesterday, with the Tech heavy NASDAQ falling hard for the 2nd day in a row. The Indexes then stabilized, with the help of a spike in Yields back over 2.20%, that lifted the Financial sector and offset some of the selling in the Tech’s. Throughout the morning, there were stories of a massive Global Cyber attacks around the World, that had the markets on edge and around 1:00pm all the averages began to fall hard, as news leaked out of Washington that the Vote on the Senate’s Health Care Bill would be delayed until after the 4th of July Holiday. The end result of this combination of events, set off some massive late day selling, that took the NASDAQ down through Supports at 6200 and 6160 and the S&P down through its Support at 2420. The DOW closed the day down about 100pts, but because of the rally in the Banks, it managed to hold its Support at 21,300.
Overall, I think that Monday’s downside reversal, was the main cause of yesterday’s selling, because the “buy the dip” crowd failed to show up and with the end of the 2nd Qtr and 1st half of 2017 on Friday, plus the 2nd Qtr Earnings Season starts soon, Money Managers may decide to stay on the sidelines this time and that
may lead to the long awaited, market correction. In early trading this morning, the DOW and S&P are slightly higher, but the NASDAQ is down about 20pts, which puts it at its 50dma and Major Support at the 6130 mark. I think that if the NASDAQ breaks this level, the door is open for a drop down to 6000 and that may trigger another
round of selling across the board, so with the Holiday weekend coming up, it might be prudent to step back and just wait.
Overnight the Global markets followed our markets lower, the DOW is up slightly, the Yield on the 10 Yr is up to 2.23%, the Dollar is rebounding and Commodities are mixed with Gold and Silver up a bit and Oil off a bit.
Today all we have on tap is the May Pending Home Sales at 10:00 and the Weekly Oil Inventory guess at 10:30, so the markets are pretty much on their own.
Today’s Early Markets
DOW Futures— up 20.00 London – down 13.58
S&P – up 300 DAX – down 74.56
GOLD—$1251 August Nikkei — down 94.84
OIL— $44.00 August HangSeng — down 156.78
DOW RESISTANCE 21,420 S&P RESISTANCE 2430
DOW SUPPORT: 21,220 S&P SUPPORT: 2410
$NASDAQ RESISTANCE 6200
$NASDAQ SUPPORT 6130/6100