Scalper1 News
Major averages finished higher yesterday on increased volume with the S&P 500 closing just under its 50-day moving average. The market initially gapped up sharply at the opening, with the Dow soaring over 170 points higher, but within an hour the markets had reversed back into negative territory. By the close, however, all the indexes had recovered on higher volume, indicating support off of the intraday lows. In fact, the NASDAQ made a higher-high since rallying off of the lows of last week. The market is at a tipping point as the recent follow through day was followed by a distribution day on the NASDAQ Composite two days after the follow through. This usually means a failed rally attempt even should the S&P 500 break above its 50-day moving average. That said, keep statistics in perspective as the world is still mired in quantitative easing which can distort historical “sure bets”. Futures are down around 0.5% at the time of this writing on further economic concerns out of China. China’s market had an extended holiday, and yesterday’s up day on the Shanghai after its long break was insufficiently strong. Context is always important. The Fed releases minutes at 2pm EST today. Scalper1 News
Scalper1 News