Midday Market Commentary For 06-26-2014
By the noon hour the averages had continued their melt-up from the morning lows, but remained in the red and the DOW easing up to -75.00.
Afternoon is looking to put more negative pressure on the markets to at least do the consolidating thing.
The sell-off this morning is because a top Fed official told FOX Business, “the central bank could begin hiking rates as soon as the first quarter of next year”. The Dow was down 117 points, or 0.69% at one point and the other major averages were charting similar patterns before reversing course.
The short term indicators are leaning towards the hold side at the midday. The all important signs of reversal, up or down, have not been observed so we are mostly, at best, neutral and conservatively holding. The important DMA’s, volume and a host of other studies have not turned and that is not enough for me to start shorting. The SP500MACD has turned down, but remains above zero at 14.73. I would advise caution in taking any position during this volatile transition period although Barchart.com shows a48 % buy. Investing.com members’ sentiments are 59 % bearish and Investors Intelligence sets the breath at 68.5 % bullish with the status at Bear Correction.
The markets are still susceptible to climbing on ‘Bernankellen’ vapor, use caution!
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The DOW at 12:15 is at 16789 down 79 or -0.47%.
The SP500 is at 1951 down 9 or -0.45%.
SPY is at 194.75 down 0.83 or -0.42%.
The $RUT is at 1177 down 6 or -0.51%.
NASDAQ is at 4362 down 17 or -0.40%.
