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Daily Market Report:June 23rd, 2010
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Fed Day Equals Whipsaw
This afternoon the Federal Reserve Bank (U.S. central bank) released their policy statement. It was truly a non event as they did not say anything that we did not already know. In their statement they did say that rates would stay low for an extended period of time. Please note that the Fed funds rate has been at zero percent since December 2010. Personally, I believe the Fed funds rate is going to be low for years to come. If the markets are struggling with rates this low and money this loose think about what would happen if they increased rates. The last major recession was in 2000 and at that time Alan Greenspan lowered the Fed funds rate to 1.00 percent causing the greatest credit bubble since the “Great Depression”. This time rates are even lower and the markets are having a hard time inflating. This just shows how powerful deflationary markets can be once they begin. Enough of that for now. We are looking at the near term cycle being down into early July before a meaningful bounce, however, the pattern on the daily chart can be indicating a possible short term bounce tomorrow. Therefore, remain short term at this time and have stop loss orders on every trade. 2010 is traders market and a traders year. The master support levels for the SPX are 1084, 1070, 1052, 1038, 1020, 1006, 989, 974, and 957. The master resistance levels for the SPX are 1103, 1118, 1137, 1153, 1171, 1186, 1205, and 1220.
August crude finished the session lower by 0.76 to close at $76.35 a barrel. The master support levels for oil are 74.00, 71.00, 67.00, 63.00, 59.00, 54.00, and 51.00. The master resistance levels for crude are 79.00, 84.00, 89.00, 95.00, and 100.00. Please remember oil is very sensitive to adverse weather, geopolitical events, and the U.S. Dollar.
August gold finished the session lower by 6.00 to close at $1234.80 an ounce. The master support levels for gold are 1218, 1202, 1182, 1167, 1148, 1134, 1114, 1100, 1087, 1067, 1035, 1016, 1003, 984, and 971. The master resistance levels for gold are 1236, 1251, 1272, 1287, and 1308.
The 10 year bond yield finished the session lower by 0.077 to close at 3.166%. The support levels for the yield are 3.13%, 3.03%, 2.95%, 2.85%, 2.78%, and 2.69%. The resistance levels for the yield are 3.21%, 3.31%, 3.39%, 3.49%, 3.57%, 3.68%, 3.77%, 3.88%, 3.96%, 4.08%, 4.16%, 4.28%, and 4.36%.
In summary, the major market indexes finished the session basically flat today after choppy around after the FOMC statement at 2:15 pm EST. The market cycle is still down into early July. Therefore, remain short term and only take the best chart setups. Please remain a short term trader and have stop loss orders on every trade at this time.
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Market Breadth
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NYSE |
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NASDAQ |
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| Advancing Issues |
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1,768 |
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1,224 |
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| Declining Issues |
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2,052 |
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1,389 |
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| Unchanged Issues |
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114 |
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141 |
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| Total Issues |
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3,934 |
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2,754 |
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| New Highs |
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61 |
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10 |
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| New Lows |
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46 |
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67 |
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| Up Volume |
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2,210,064,976 |
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673,175,225 |
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| Down Volume |
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2,773,339,131 |
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1,076,576,733 |
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| Unchanged Volume |
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54,071,072 |
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32,302,704 |
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| Total Volume |
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5,037,902,384 |
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1,782,054,662 |
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Most Actives
| Symbol |
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Closing Price |
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Change |
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Volume |
| C |
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3.89 |
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-0.05 |
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456,625,165 |
| SPY |
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109.23 |
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-0.34 |
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242,986,220 |
| BAC |
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15.43 |
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-0.15 |
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130,222,249 |
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Biggest Gainers
| Symbol |
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Closing Price |
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Change |
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Volume |
| C |
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3.89 |
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-0.05 |
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456,625,165 |
| SPY |
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109.23 |
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-0.34 |
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242,986,220 |
| BAC |
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15.43 |
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-0.15 |
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130,222,249 |
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Biggest Losers
| Symbol |
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Closing Price |
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Change |
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Volume |
| ALRN |
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0.91 |
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-0.20 (18.02%) |
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768,632 |
| VVTV |
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1.73 |
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-0.21 (10.82%) |
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623,687 |
| WL |
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11.56 |
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-1.43 (11.01%) |
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5,518,873 |
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