Wow- that was fast. Is something rotten in the state of Denmark? Despite the euphoria following the announcement that Spanish would be bailed, the strong open on 6-11-12 was sold throughout the day. One day trading is more than likely just noise, but the trend is definitely down.
Short-term, the 1,330 level (or there around) seems to be an important technical resistance level. I note that the July 2011 sell-off after the end of the QE2 began in or around the 1,330 level and is marked by the last time heavy volume began to come into the market.
The oil market is also selling off, as shown in the short-term chart above. A war premium was probably built into the price earlier in 2012, as tensions with Iran escalated, but the recent sell off in oil follows the equity market and the drop off in money supply.
With heavy selling in the coal names, my portfolios traded down significantly in trading yesterday. I did not want to look at the final print. Traders and investors, at least at the open, look to use the decline to enter the market as futures are up marginally across the board. This may just be the market operators manipulating the price get out of positions or enter shorts at better prices.
| Index Future | Future Date | Last | Net Change | Open | High | Low | Time |
|---|---|---|---|---|---|---|---|
| DJIA INDEX | Sep12 | 12,380.00 | +70.00 | 12,320.00 | 12,397.00 | 12,309.00 | 06:59:49 |
| S&P 500 | Sep12 | 1,306.50 | +6.20 | 1,300.60 | 1,309.10 | 1,297.90 | 07:00:32 |
| NASDAQ 100 | Sep12 | 2,524.00 | +14.00 | 2,510.00 | 2,528.25 | 2,507.00 | 06:59:50 |
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