Wednesday, June 11, 2008

Today's Markets

Oil spiked again, closing at $136.38. There's been a ton of volatility in the oil market lately. Corn also spiked as the floods in the Midwest delayed planting. The Fed's Beige Book painted a fairy dour picture of the economy. Finally, the US Treasury reported a record deficit, largely thanks to the stimulus checks that went out.

Let's take a look at the charts.

The SPYs gapped down at the open, then traded sideways for most of the rest of the day. They found resistance at various points, first at the 20 minute SMA then at a previous high. The index tried to make a move through the 50 SMA but couldn't make it. Notice the SPYs broke through support about a half hour before before the close and continued to move lower on increasing volume.

The QQQQs also gapped down at the open. They rallied into the 10 and 20 minute SMA until about 1PM CST when they tried to move above the 50 SMA. They couldn't maintain the strength and fell into the close. Notice the accelerating volume at the end of trading.

The IWMs also sold off in the morning. Throughout the day they tried to rally three times but couldn't get any momentum. They fell with ab out half and hour to go in trading and then moved lower on increasing volume.