Wednesday was a nice strong day, as the market rallied on hopeful solution for Spain. European financial crisis was still the main driver for global markets. The Dow popped almost 300 points! After such a strong day, the market was ready to take profits. But, China’s surprise interest rate cut this morning, prompted more buying, perhaps more short covering. We quickly locked in our profits on the long side:
- June 07, 2012
- June 06, 2012
But, the buying today faded in the last hour, with the broader market ending flat. The Dow managed to stay up +46.17 points; SPX slid 0.14 points; Nasdaq fell 13.7 points:
SOXX (semiconductors) dropped 1.37%. GDX (gold miners) lost 3.42%. GLD (gold) and SLV (silver) both fell. Most other sectors were slightly on the downside.
SPX slid 0.14 point to close at 1314.99. It closed right at its 20-day MA. The MACD turned up.
Nasdaq fell 13.7 points to close at 2831.02. It fell just below its 20-day MA. The MACD also went higher.
After a couple of strong days, the market was ready for a breather. We might see a slight weakness tomorrow and the market may test SPX 1300 again. But, it does seem like the market is trying hard to make the recent bottom a turning point. We probably won’t be trading much tomorrow and are now back into mostly cash. Let’s see how this week ends. I suspect that this time, there will be more buyers ready to come in on weakness. Wait for SPX to get close to 1300!
Good night and HappyTrading! ™