Before the Open (Jun 16)

Good morning. Happy Thursday.
The Asian/Pacific markets closed with stiff across-the-board losses. Europe is currently suffering the same. Futures here in the States point towards a moderate gap down open for the cash market which will open the S&P below yesterday’s low.
The situation in Greece continues to weigh on things, and I don’t think it’s too far-fetched to conclude the market will not move up until a resolution is achieved. Wall St. is good at dealing with bad situations, but it doesn’t like dealing with uncertainty.
One positive yesterday was the movement of the Russell 2000 vs. the S&P 500. The Russell tends to lead in both directions. If the SPX makes a lower low, but the Russell does not, it’s a good sign. If the SPX makes a higher high, but the Russell does not, it’s a bad sign. Yesterday the SPX made a lower low, but the Russell held up. This type of positive divergence takes several days to fully play out, so the Russell could make a new low today and negate the divergence but at least it’s a step in the right directions.
Here’s the chart from August 2010…

And here’s the chart from November 2010…

And here’s today’s chart…

headlines at Yahoo Finance
today’s upgrades/downgrades
yesterday’s sector performance
this week’s Earnings
this week’s Economic Numbers

0 thoughts on “Before the Open (Jun 16)

  1. Today is a full moon (+) Bradley Model turn cycle date
    according to McHugh’s daily report. Of course EW theory
    is skewed to the downside, but, watch out for a mid-day
    bounce today, or at least a reversal of some sorts to
    happen over the next few days. Maybe resolution to the
    Greece crisis could result in a panic up day on Monday.

    1. Aussie: you are delayed by 12 hours on this website.
      So the next time you go to the bathroom check and
      see if you are growing hair in places you’d least
      expect it to. Futures now turning positive. 9am NYC

  2. so now we know the strike prices the instos would like to open for the quad witch dance opts ex tomorrow in the ftse–5700 -dax 7100 –spx,dji,ndx
    will go back to sleep now

  3. oh and the 1262 can do as the neck to the h/s but a drop down from the 1270 strike to
    below 1250 to trap the bears would go well
    imo the 1262 spx rules out the triangula space ship

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