Online Stock Trading | Intraday reversal throws leaders and traders for a loop.

Intraday reversal throws leaders and traders for a loop.


Filed Under Market Commentary |

An expected decline in existing home sales had just enough juice to get the Bulls excited this morning.  GOOG for the better part of the day was enjoying nice gains.  All for not, stocks started the tumble just before noon.  By 1:30pmEST stocks gained momentum on the downside only to finish off the lows of the session.  Volume was much lower than Friday’s action but today’s trade is something to be very cautious about.

Over the bond market, treasury yields retreated leaving the upward slop intact.  10 year Treasury yield finished the day at 5.082 well off its 6/12 high of 5.295.  Bonds most like are prediction another non-movement by the FOMC this Thursday.  I fully expect the FOMC to remain in place with a possible mention of current bond market yields.  Yields on the 5 and 10 year finally started to reflect some inflationary pressures; for the FOMC this a good sign.  Enough on bonds, about to bore myself to death. 

A big story of the day was the VIX index jumping as high as 17.24.  We are definitely seeing heightened fear in the market and more bears calling a top.  Today’s action can certainly warrant more weight behind downside pressure remaining but, a full blown correction?  I do not see that just yet. 

The S&P 500 broke through its 50dma for the first time since the end of March.  I may remind you the S&P 500 is up 4.84% since that time.  Although a small gain, just because the index broke through its 50dma doesn’t mean the correction is coming i.e. 2/27/07.  We do not have the euphoria yet in the market to see a real correction.  Simply too much negativity to have any teeth on the downside. 

All the best 

Market Speculator 

 

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