The Closing Look
Stocks opened lower but turned higher after the bulls showed up and defended the 50 DMA line for the major indices. The ISM non-manufacturing PMI rose to 56.5 last month versus 52.9 in May. Markit’s U.S. services PMI edged higher to 51.4 in June, up fractionally from 51.3 in May. At 2pm EST, the Fed released the minutes of its latest meeting which showed Fed officials are going to hold off until the economy improves.
Gary’s Thoughts: Fed found another excuse to not raise rates even to a whopping 1/2%. Amazing! Market acted nothing but bullish Wednesday. Evena coupl eof housing names appearing. Please do not argue with price action. It is the only thing that matters in markets.
This market is a tough call.
We …ARE….. breaking down on my very early charts. No doubt… The market is a short.
Butt…
The break down is just above the 50 day ma.
So, ooo any break down, is rather sort of, on to the 50 day + support.
Xlf is 50 day negative, butt…. the banks inside xlf, ,, if they fall, will do so through layers of support.
I therefore must toss it to my two special indicators, and they are telling me the market is ok,,, now, butt, there is a problem looking out.
IEF, the 10 year bond:
Its extended.
If IEF pulls back, that means money flowing out of the bond, looking for a home.
IE: the home is the stock market.
That means this market could rally off the 50 day…
Gezz, I dunno…. I’ve never been more confused..
I’m out.