Let’s blame the downside push on interest rates moving higher… sounds good. I always wonder what the media is thinking when they produce the headlines that blame the hottest item in the news. It must be logical since it is in the news. We will just go with it for now and pretend that the selling today was due to nervous investors over interest rates moving higher. As you can tell I am still on the headline theme as that is the driver currently in the absence of direction the market looks to news for daily assessments.
The dollar would be a more practical answer, but then it fell today along with the price of oil. Greece is adding some pressure as they continue to live in denial of reality. Oil prices holding in their range, thus the pressure from the commodity is gone. Gold held the $1170 level of support. The trade deficit is a new whipping post in the headlines as it declines, and we cannot make it a good day without the G-7 adding their comments on Germany, Ukraine, bonds… but, let’s not forget the plan to end fossil-fuel use in 85 years. That must explain the drop in oil prices today.
I will say the Dow broke below the 17,970 support last week and continued lower today with the 17,585 mark and the 200 day moving average next to offer support. This has been the weaker of the major indexes of late. The NASDAQ is at the 5010 level of support and the NASDAQ 100 index broke 4455 support and 4410 is next. Russell 2000 index is holding above 1250 and looks the strongest for now. The trendlines are coming into play again and breaks lower start the reversal short term. The VIX index is not reflective of the total market as it is showing little anxiety currently. Overall still in testing phase on the downside for the market… if the selling continues tomorrow it could spark some short opportunities as we move forward.
Tonight I am posting my written notes (see link below) again for insight into today’s trading day… what we were watching and what unfolded on the day. Tomorrow is another day and we will remain patient for now keeping our stops in place and the exits in sight.