After chopping around much of the morning, markets sold off into the last hour when the selling momentum increased. Commodities such as oil, gold, and silver continued to pullback after reaching some key resistance levels. We remain in an insipid market environment with no clear directional bias. Also, seasonally, June is often a month that experiences selling after a spring rally. July usually has a bounce upwards, representing the weak summer rally and markets tend to sell off into August and September. August is less predictable due to lower volumes as well as traditionally being a month in which institutional investors engage in quiet accumulation. September, many funds and other institutional investors tend to sell the laggards in their funds and rebalance. October usually marks the beginning of the seasonal rally into December.
A survey by the Bank of America shows that fund managers are showing more optimism for an economic recovery and many are overweight equities. Hedge funds will now be required to register with the SEC in the US. In addition, President Obama has released information regarding plans to reform US financial regulators.
Futures this morning are negative along with the DAX indicating a down open. The market conditions scans are showing a weak bias towards continued selling due to the sell momentum scan and the overbought scan, but many stocks are near support, suggesting shorting may be riskier. The market bias indicators are showing a statistical bias for a bounce in the next one to five days, also confirming that any shorting at this time would be risky.
| Index | Change | %Change | Level | Phase |
| TSX | -87.38 | -0.84% | 10307.40 | Bullish |
| DJIA | -107.46 | -1.25% | 8504.67 | Recovery |
| Nasdaq | -20.20 | -1.11% | 1796.18 | Bullish |
| SP 500 | -11.75 | -1.27% | 911.97 | Accumulation |
| Russell 2000 | -8.09 | -1.58% | 503.74 | Accumulation |
| NYSE | -80.50 | -1.35% | 5886.76 | Accumulation |
Source: Telechart
Short Term market outlook:
Bias: Scans showing a neutral bias
Energy: weak
Primary Trend: sideways
| Sector | Phase |
| Consumer Staples | Recovery |
| Healthcare | Recovery |
| Technology | Bullish |
| Utilities | Recovery |
| Energy | Accumulation |
| Financials | Recovery |
| Industrials | Recovery |
| Materials | Recovery |
| Consumer Discretionary | Recovery |
Source: Telechart
Posts
No comments:
Post a Comment