The markets sold sharply after opening nicely higher. This sell off is interesting because of many reasons. Most people would assume oil must be running sharply higher intra day. However, that is not the case. The United States Oil Fund LP (NYSE:USO) is trading at $42.63, +0.30 (+0.71%). Oil is off the highs but still not helping the markets bounce.
This morning oil futures are declining lower by $1.27 to $100.93 a barrel. This decline in crude is the primary catalyst for the large move higher in the S&P 500 Index futures ahead of the opening bell at the New York Stock Exchange. The highly popular United States Oil Fund ETF(NYSE:USO) is trading lower this morning by 0.63 cents to $40.76 a share.
Is Gold Playing Out The "Buy The Rumor Sell The News" Trade?
Oxen Group Nightly - Feb. 4, 2011 - Stock Market Recap
Oxen Nightly - Dow Hits 12,000, Netflix Kills It, and Oxen Group Goes 4/5
The markets made it slightly higher on Wednesday after spending most of the day even higher in the green, but the real story came in after hours with a great round of earnings headed up by Netflix (NFLX) and Qualcomm (QCOM). Intraday, the market hit 12,000 before faltering off that level.
The markets have had a wild session today, opening lower, shooting higher on consumer confidence numbers only to get slammed and make a dramatic move to new lows. The SPDR S&P 500 ETF (NYSE:SPY) $128.30 support level was nailed perfectly, called in the Intra Day Stock Chat. Since then, the markets have roared back, now just holding slightly to the negative side.
This entire week of trading has been done on extremely light volume. This is typical action during the week between the Christmas and New Years holiday. Today the SPDR S&P 500 Index(NYSE:SPY) found a low at 10:00 am EST and has bounced slightly higher since that time. It is always important to remember the old market adage that states, 'never short a dull market'.