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While the S&P did manage to rise above the prior session’s high in the overnight action, the action on the charts isn’t overly impressive. While some equity markets were lifted overnight off rumors of a robust Chinese monthly export tally, that potential optimism was offset by news that Greece GDP was down by 1%. In our opinion, one might have expected the Greece GDP reading to have been down by significantly more than 1%, especially when one considers expectations for a complete disaster in that country. About the best Bernanke could do for the bull camp in comments yesterday, was to suggest that the US looked to avoid a double dip recession. Therefore, one can hardly get “bulled up” on stocks over the dialogue from the Fed, especially since the Fed’s Hoenig reiterated the need to hike interest rates before the end of the year. We continue to think that the longs are facing significant risk, for a fairly limited reward.
S&P 500: While the S&P did manage to rise above the prior session’s high in the overnight action, we don’t see a scheduled event that is expected to cheer investors. In fact, with the US Fed Chairman given a somewhat anemic view on the US economy yesterday, we have to think that most investors will prefer the sidelines given the limited reward potential in the marketplace. We think it will take a close back above 1066.10 in the June S&P to turn the trend back up. Near term downside targeting is seen down at 1047.50.
DOW: The June Mini Dow appears to have forged a quasi double top around the 9,946 level, but technically the Mini Dow has left a pattern of lower highs in place on the charts. We think the market missed an opportunity to rally off statements from the EU on Monday morning and without the prospect of favorable US economic data directly ahead, we just don’t see where the bull camp is going to get a definitive bullish catalyst to drive prices back up. In order to change our opinion on the downtrend status, we need to see two closes back above the 10,000 level. Until the trend is altered, we see little in the way of support until the 9,828 level.
NASDAQ: The June Nasdaq has continued to forge a pattern of lower highs on the charts and that should leave open the prospect of a return to the 1750.00 level in the coming trading sessions. The failure to see a distinctly favorable reaction to recent Apple news and to talk of favorable chip sale patterns overnight suggests to us that even the best sector of the equity market is unwilling to embrace positives and that suggests investors are still more worried about risk than they are of missing an opportunity on the long side.
TODAY’S MARKET IDEAS: Less anxiety today but the view toward the global economy is mixed as growth in China is discounted in the face of lingering uncertainty toward Europe.
Stock Index Market Commentary – 2010.06.09
by Dave Hightower on June 9, 2010
Below is a sample of our Daily Commentary. To get this comment, and our daily coverage of 15 additional markets and trade ideas, visit futures-research.com for your free 2 week trial!
While the S&P did manage to rise above the prior session’s high in the overnight action, the action on the charts isn’t overly impressive. While some equity markets were lifted overnight off rumors of a robust Chinese monthly export tally, that potential optimism was offset by news that Greece GDP was down by 1%. In our opinion, one might have expected the Greece GDP reading to have been down by significantly more than 1%, especially when one considers expectations for a complete disaster in that country. About the best Bernanke could do for the bull camp in comments yesterday, was to suggest that the US looked to avoid a double dip recession. Therefore, one can hardly get “bulled up” on stocks over the dialogue from the Fed, especially since the Fed’s Hoenig reiterated the need to hike interest rates before the end of the year. We continue to think that the longs are facing significant risk, for a fairly limited reward.
S&P 500: While the S&P did manage to rise above the prior session’s high in the overnight action, we don’t see a scheduled event that is expected to cheer investors. In fact, with the US Fed Chairman given a somewhat anemic view on the US economy yesterday, we have to think that most investors will prefer the sidelines given the limited reward potential in the marketplace. We think it will take a close back above 1066.10 in the June S&P to turn the trend back up. Near term downside targeting is seen down at 1047.50.
DOW: The June Mini Dow appears to have forged a quasi double top around the 9,946 level, but technically the Mini Dow has left a pattern of lower highs in place on the charts. We think the market missed an opportunity to rally off statements from the EU on Monday morning and without the prospect of favorable US economic data directly ahead, we just don’t see where the bull camp is going to get a definitive bullish catalyst to drive prices back up. In order to change our opinion on the downtrend status, we need to see two closes back above the 10,000 level. Until the trend is altered, we see little in the way of support until the 9,828 level.
NASDAQ: The June Nasdaq has continued to forge a pattern of lower highs on the charts and that should leave open the prospect of a return to the 1750.00 level in the coming trading sessions. The failure to see a distinctly favorable reaction to recent Apple news and to talk of favorable chip sale patterns overnight suggests to us that even the best sector of the equity market is unwilling to embrace positives and that suggests investors are still more worried about risk than they are of missing an opportunity on the long side.
TODAY’S MARKET IDEAS: Less anxiety today but the view toward the global economy is mixed as growth in China is discounted in the face of lingering uncertainty toward Europe.
Tags: DOW, NASDAQ, S&P 500, Stocks
About Dave Hightower