Greece past austerity measures sending thousands to the streets protesting giving sellers a reason to push down technology stocks. Volume began to creep higher as the morning wore on, but financial stocks began to pick up steam keeping the S&P 500 a float. Not giving up, the NASDAQ was able to turn around and move into positive territory. The roller coaster ride was not over as a late afternoon dip followed by a recovery fooling many traders. Volume was higher on the day, but many leaders aren’t showing the massive acculation we would normally see. The NASDAQ remains underneath its 50 day moving average. Today was a day of accumulation despite questionable underneath.
The NASDAQ still remains under its 50 day moving average. A key level many traders, including us like to see the index remain above it. We will need to see the NASDAQ power through its 50 day with big volume to prove this uptrend’s worth. However, any sign of reversal at the moving average will unfortunately signal the end to this move. We aren’t going to anticipate either situation, but we will be prepared to react as the market warrants.
It does appear many market participants fail to incorporate historical prescedence when analyzing the market. Summer months tend to produce weak rallies sucking in those who were late to the party. While we can still rally from where we are here, it is very unlikely this will produce a sizeable rally. If we were seeing a myriad of leaders breaking out on huge volume this would be a different story. However, we continue to see the lack of institutional support in the market leaders to infuse much confidence.
Good news for Visa (V) and Mastercard (MA) as the Fed raised debit card fee limits. Not good for the consumer. The federal reserve continues to put pressure on lower to middle class income families. First with money printing induced inflation and now with higher debit card fees. Very interesting to see how the feds continue to squeeze the lower class. Rather than lifting people from the lower income brackett the government continues to fight to keep them there. Very sad.
It would be nice to get a new sustainable rally, but it isn’t likely we have a huge rally in front of us. Stay nimble and always cut your losses short.
