The markets slid a little more today. But, the commodities took a substantial hit. The volatility was extremely high with VIX closing just below 19, which has been the upper boundary for over 3 years!! GLD closed below 64, down 1.26%. And, XME also broke down, losing 2.39%! USO (United States Oil Fund) lost 1.62% and OIH gave up 1.61%.
It seems like the big money is getting out of commodities and gradually getting into techs. Some of the “old big techs” held on strong and closed green today, such as CSCO, IBM, and MSFT. The Internet sector is still among the strongest, as INX2 (CBOE Internet Index) closed up 1.28 points. And, GOOG had its first-ever close above 530!!
SPX closed with -4.85 points, at 1492.89, getting closer and closer to testing 1490. The daily MAs are bunching closer together. It’ll find a direction soon, and perhaps FOMC’s results on Thursday will do the trick.
Nasdaq’s daily chart doesn’t show much new information. Nasdaq gave up 2.92 points today.
XME has caught up with its lower BB again! This time the daily MAs are in their bearish formation with 10- below the 20- below the 30-, and they are curving down. So, be careful with this sector. Check out the performance of its top 10 holdings today (click here)! Not pretty!
So, there’s definitely some big money rotation going on. The major indices are barely hanging on in the neutral territory. Let’s see how SPX does with 1490 tomorrow. But, we’ll probably have to wait until Thursday to get things sorted out.
Good night and HappyTrading! ™
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