All the charts and calculations have shown today to be the day of all days. What does this mean? The market is at a major pivot point on this Tuesday, May 15th, 2012. If the market is able to hold up, investors would experience a one to two week neutral to higher move. If the markets break lower today, down side is likely until the SPDR S&P 500 ETF (NYSEARCA:SPY) hits $129.00.
Look For Risk-Off Trade To Gain Momentum Over Next Two Months
The average summertime correction in years when the market generally rallies is 11 percent and the average duration of the downturn is just under 3 months. Unless the economic data deteriorates further, look for a pullback of roughly average duration and severity this summer. Such a move would see the S&P 500 re-test the 1,270 to 1,280 support area and find a bottom at some point over the summer.
Head And Shoulders: Can They Save It From Triggering
The U.S. markets are trading flat on the day after an ugly overnight session in the S&P futures. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $136.91, -0.05 (-0.04%) after the S&P futures were down as much as 20 points overnight. This surge back was helped by the weakening Dollar and the strengthening Euro off their overnight highs and lows.
Stocks are trading lower today on the back of a poor ADP Private Sector Jobs Report and continued problems in Europe. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $139.96, -0.78 (-0.55%). Yesterdays ISM Manufacturing Report rallied the markets on hopes that jobs would show a better than expected increase. However, that did not occur and stocks have erased all of the gains from yesterday.
The markets are spiking sharply higher today on extremely light volume. Most markets in Europe are closed today. This is like the analogy, when the cat is away, the mice will play. Light volume, no problems in Europe mean solid upside but also a great shorting opportunity for smart traders. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $141.54 +1.77 (1.27%).
Next 24 Hours: Markets Hold Breath For Apple And FOMC
The markets are floating around the flat line. All eyes are focused on the after market earnings release from Apple Inc. (NASDAQ:AAPL) and the FOMC policy statement scheduled for Wednesday. This is keeping investors very nervous as worries of an iPhone sales miss is looming large. In addition, the markets are looking for Ben Bernanke to give a hint at future quantitative easing once again.
The markets opened lower after earnings reports from International Business Machines Corp. (NYSE:IBM) and Intel Corporation (NASDAQ:INTC). Both reports were slightly shy of Wall Streets expectations. As those stocks dropped, so did the markets. While down, the markets are only hovering slightly lower with the SPDR S&P 500 ETF (NYSEARCA:SPY) trading at $138.78, -0.31 (-0.22%).
How To Trade It: Technology Tumbles, Europe Fears Go
The markets opened nicely higher only to get slammed once again. Last week the markets saw their largest decline of 2012. The down cycle called by Chief Market Strategists at InTheMoneyStocks is fully in play. European worries continue to increase and technology has seen a sharp pull back from its recent highs.
Rally Today: Market Preps For Major Earnings And Data
The markets are having a solid snap back rally. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $137.08, +1.24 (+0.91%). A bounce like today is largely expected by intelligent investors as the buy the dip mentality is still alive and well. In addition, European markets did close higher on the day, thus giving the U.S. markets a sigh of relief. The earnings report from Alcoa Inc.