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The stock market looks to be in a liquidation pattern today, as the reward for being long this market continues to be limited by rather limited expectations for future world growth. While the market saw some fresh developments from the Euro zone financial front this morning, the bank stress tests results won’t be made public until July 23rd and therefore the influence of the distribution of the stress test criterion isn’t expected to be a major deal today. However, with the string of US data over the last month clearly pointing to fresh slowing, investors are likely to continue to dump holdings in the face of technical pressure. Even though the Nasdaq and S&P were found to be net spec short in the latest COT figures, the bounce yesterday was probably enough to balance those markets and in turn clear the way for more declines ahead.
S&P 500: Despite the big range down reversal recovery action on Tuesday, the S&P looks to start the new trading session out on a weaker footing. Critical downside support is seen at 1011.00 this morning but a return to the recent lows is likely as the market doesn’t look to have much in the way of a game-changer event directly ahead. In fact, news that BP was potentially poised to get some outside investment capital was mostly discounted this morning and that highlights a market that is focused on the negatives.
DOW: With the Mini Dow retaining a modest net spec long in the last COT report and the market bouncing yesterday that should clear the way for a return back to the sub 9,600 level. In fact, with the jobs market suspect again, the big cap stocks will have to rely on cost cutting and international business just to tread water. Therefore we see mostly risk and little reward for being long. Near term downside targeting is seen at 9,561 and then again down at 9,500, with the market not showing panic and anxiety, but investors in general expected to show a distinct lack of buying interest.
NASDAQ: After a very surprising rally attempt, the September Nasdaq appears to be back on the liquidation ropes again this morning. We see little in the way of support in the September Nasdaq until the 1709.00 level but we doubt that internal positive news flow for the equity is going to be enough to countervail a liquidation attitude in the marketplace. In fact, the market seems to be poised to turn the simple release of the Euro zone bank stress test criterion into a negative and that highlights a market that is looking for the negatives. As suggested before, we don’t see panic and anxiety selling but we do see a continued down trend pattern.
TODAY’S MARKET IDEAS: While there isn’t fear in the marketplace, there also isn’t much in the way of optimism presence in the market talk and that means rewards are expected to be limited while risks seem to be fairly significant.
Stock Market Commentary – 2010.07.07
by Dave Hightower on July 7, 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!
The stock market looks to be in a liquidation pattern today, as the reward for being long this market continues to be limited by rather limited expectations for future world growth. While the market saw some fresh developments from the Euro zone financial front this morning, the bank stress tests results won’t be made public until July 23rd and therefore the influence of the distribution of the stress test criterion isn’t expected to be a major deal today. However, with the string of US data over the last month clearly pointing to fresh slowing, investors are likely to continue to dump holdings in the face of technical pressure. Even though the Nasdaq and S&P were found to be net spec short in the latest COT figures, the bounce yesterday was probably enough to balance those markets and in turn clear the way for more declines ahead.
S&P 500: Despite the big range down reversal recovery action on Tuesday, the S&P looks to start the new trading session out on a weaker footing. Critical downside support is seen at 1011.00 this morning but a return to the recent lows is likely as the market doesn’t look to have much in the way of a game-changer event directly ahead. In fact, news that BP was potentially poised to get some outside investment capital was mostly discounted this morning and that highlights a market that is focused on the negatives.
DOW: With the Mini Dow retaining a modest net spec long in the last COT report and the market bouncing yesterday that should clear the way for a return back to the sub 9,600 level. In fact, with the jobs market suspect again, the big cap stocks will have to rely on cost cutting and international business just to tread water. Therefore we see mostly risk and little reward for being long. Near term downside targeting is seen at 9,561 and then again down at 9,500, with the market not showing panic and anxiety, but investors in general expected to show a distinct lack of buying interest.
NASDAQ: After a very surprising rally attempt, the September Nasdaq appears to be back on the liquidation ropes again this morning. We see little in the way of support in the September Nasdaq until the 1709.00 level but we doubt that internal positive news flow for the equity is going to be enough to countervail a liquidation attitude in the marketplace. In fact, the market seems to be poised to turn the simple release of the Euro zone bank stress test criterion into a negative and that highlights a market that is looking for the negatives. As suggested before, we don’t see panic and anxiety selling but we do see a continued down trend pattern.
TODAY’S MARKET IDEAS: While there isn’t fear in the marketplace, there also isn’t much in the way of optimism presence in the market talk and that means rewards are expected to be limited while risks seem to be fairly significant.
Tags: DOW, Financials, NASDAQ, S&P 500, Stocks
About Dave Hightower