Tuesday, July 17, 2012
Moving higher per expiration week as the Dow gained 78 points on what passes for average volume these days. The advance/declines were 2 to 1 positive. The market opened higher, moved lower when Bernanke started talking and then resumed its climb back to the upside. The economic data today was about in line with expectations. Summation index still moving to the upside. Resistance on the S&P 500 comes in at 1370. A decisive break above that level would send the stock indexes much higher in my opinion. I'm not sure if that will be the case. The down trend line at 1370 has been in effect since the beginning of April. GE was up 1/8 on average volume. Still oversold on the daily technicals there. We'll look to the earnings on Friday as a catalyst one way or the other. Gold was moving around to the downside today. The precious metal lost a few bucks in the regular session and then fell more in the aftermarket. The US dollar was lower today as well. The XAU was off 1 1/2. ABX, GG and NEM were all off fractionally on light volume. I'm still holding the ABX August calls and will be until the earnings out next week. They continue solidly in the red. Mentally I'm feeling a bit tired, did not sleep well. Looking to see if we can break the longer term resistance on the stock indices and that will be the key for the near term. The S&P 500 will easily go to 1400 if we can break through 1370 in my analysis. Hasn't happened yet. Gold remains range bound as it has been for weeks on end. Not sure what will get the metal moving. More Bernanke tomorrow along with the days economic data.