Morning Coffee
Although opening slightly higher this morning, the market has moved to the downside after the release of some troubling economic data. The jobless claims report showed a surprising (to some) increase of 12,000 claims or a seasonally adjusted 472,000 after three consecutive weeks of drops. The LEI (Leading Economic Indicators) showed an increase of 0.4 against an expectation of 0.5. However, the most shocking news of the morning was the Philly Fed Index coming in at a reading of 8 for June after a 21.4 reading in May. That is an amazing drop in manufacturing activity
Afternoon Tea
At the time of this posting, after finally breaking to the upside, the market is moving back down for yet another test of the 1108 level (as you clearly know by now, the 200 day moving average).
Morning Coffee
The testing process of a break of support/resistance works both ways. The S&P was able to break above and more importantly close above, the important 200 day moving average at 1108 on Tuesday. This morning the market has pulled back slightly and is testing the break from the upside. Technical traders will all be watching closely to see if the market can hold that break from Tuesday's trade.
Afternoon Tea
Here we go again! As with yesterday, the market broke above 1100 and is testing the 200 day mva at 1108? Can it break it this time? If so and more importantly, can it close above 1108? The afternoon battle will tell the tale.
Morning Coffee
The market opened higher and is once again testing the psychological level of 1100. As discussed yesterday, the market was able to move above 1100 but was turned back at the 200 day moving average at 1108. The same scenario is setting up again today, ie: a test of 1100 and an attempt to break back above the 200 day moving average.
Afternoon Tea
The market broke the 1100 level, tested the break and then took on the 200 day moving average at 1108. It would be expected that the shorts would try and make a stand there and they did just that. The market was turned away just under 1108 and is now retesting 1100. The close today should prove to be quite interesting as is watching the battle between the bulls and bears between 1100 and 1108.
Morning Coffee
The market opened higher this morning based on stronger than expected economic data in the eurozone. As discussed previously, the market was very oversold and due for this bounce. At the time of this writing, the market is bumping against 1100 (S&P) which represents a psychological level of resistance and close to the more technical resistance level of its 200 day moving average at 1108. A break higher from here would cause some short covering and provide fuel for a further bounce to the upside.