Got the little bit of selling into the close that I mentioned earlier. The overbought stochastic once again won out in the short term.
For the day, the DOW closed down 100 points even, the SPX closed down 1%, the NDX lost 1.4%, and the RUT actually managed to finish in the green, UP .8%. Again, the fools rush in! The crowd seems to believe that small caps and commercial real estate will do well – HA, HA, good luck.
IYR finished up 2.5%, and SRS is the ugly stepchild all of a sudden, closing down another 7.4% at the $57 mark. It was nearly $300 just 3 weeks ago! If you are short SRS, be careful, today was a high volume day that could be a turning point.
Both the DOW and the S&P managed to stay above and close above the 50 day moving average. That’s a bullish sign. SPX 1 month daily is below:
The 60 minute and 30 minute stochastic still have room on the downside. Still crosscurrents, don’t see anything that gets me excited one way or the other besides the action in the bond and currency markets.
Have a good evening,