Neckline test - Stock were down yesterday after a couple of weaker than expected economic reports - the ISM report, and the ADP weekly employment report. The Dow lost 84-points... Market Commentary for 5/05/11 Current Daily Market Commentary
The major averages spent all or most of the day below the neutral line, posting moderate losses across the board by the close. And just like yesterday, a late session rally helped the averages close well off their lows of the days.
Volume was again a bit higher on the NYSE than had been typical for the month of April. It almost feels like this is a stealth melt-down. The fact that commodities are being hit hard (the CRB Commodity Index fell 1.8%), with Silver in particular seeing
The caution is flag is out again, as today's weakness is putting pressure on the Seven Sentinels.
It was a relatively slow news day, so I'm going to go straight to the charts:
Today's weakness has taken NAMO below the neutral line, while NYMO remains above it, but not by much. Both remain in a sell condition.
NAHL and NYHL are also flashing sells. The 6 day EMA here suggests
Stocks and bonds moving together - Stocks opened higher yesterday after the emotional news of the death of Osama bin Laden. These emotion driven market moves tend to reverse quickly... Market Commentary for 5/03/11 Current Daily Market Commentary
There was a media blitz today, that centered on a long awaited storyline. That being U.S. forces finally finding and killing Osama bin Laden. Early on it appeared the market would react very positively to the news as futures were up moderately. And while stocks did gap higher initially, they didn't rally into the day. In fact, before noon EST stocks began to drift lower, settling into listless trading above and below the neutral line. By the close the major averages posted modest to moderate losses,