Yesterday’s Action

by Dan June 23, 2011 8:44 am • Commentary

The Feds here and abroad are really doing a number on world markets……our late afternoon sell-off came after the Fed Chairman’s statement and Q&A following a 2 day FOMC meeting where they essentially downgraded the outlook for the economy, leaving the door open for future easing, if necessary………this came as Jean-Claude Trichet, the head of the ECB said “risk signals for the financial stability in the euro area are flashing red as the debt crisis threatens to infect banks”

S&P futures are currently down 1%, Europe is down over 1% across the board as the $ is rallying.  Initial jobless claims just came out and they were higher than expected adding to the worries about the weak economy.  All eyes will be on the New Home Sales due out at 10am…..

The markets obviously trade horribly and rallies that don’t follow through like Tuesday’s present problems on days like today because a lot of traders were chasing a lot of stocks that they are not likely to hold for long on this reversal. This could add to the selling pressure today…..

As for the SPX, a close below 1262 the 200 day moving average would be particularly bearish, and very likely a signal for the imminent break below the March lows….

7 Month SPX chart Provided by Bloomberg LP


Earnings, interestingly enough, have been coming in pretty good as BBBY, JBL and RHT have all been better than expected…..ORCL is out tonight and should be help-full to get a sense for global IT demand….