Today is a major day. Simply put, the S&P 500 is trading right on a major break down, break out trend line.
Should the markets close lower, sharp downside is expected in the coming days. If the markets close higher, neutral to upside continues into next week. The SPDR Dow Jones Industrial Average ETF (NYSE:DIA) $111.97, +0.26 (+0.23%).
Lost Cause: Stock Markets Surge On Hopes And Dreams
The markets are surging today on major optimism over the European debt scenario. Late yesterday, news broke that the powers in Europe are preparing to handle the crisis with major initiatives. These initiatives will mirror those done by the United States in 2008. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $118.89, +2.65 (+2.28%).
This afternoon, the major stock indexes are still under severe selling pressure. The Dow Jones Industrial Average is trading lower by more than 440.00 points to 10,674.00. The one factor that is helping the stock indexes from declining lower is the quick drop in the U.S. Dollar Index.
The stock market continues its collapse today. The Federal Reserve did virtually nothing to alleviate the global slow down fears and the markets responded with massive downside. At this point, the Dow Jones Industrial Average has fallen over 600 points in the last two days. Today, the SPDR S&P 500 ETF (NYSE:SPY) is trading at $113.05, -3.58 (-3.07%).
The markets are driving higher today on expectations of some major quantitative easing by the Federal Reserve. Tomorrow is the big day. Ben Bernanke and his fellow Federal Reserve cronies will release their policy statement. In his last few speeches, Ben Bernanke has eluded to more easing. Because of this, the markets have high expectations.
The stock market is dropping today after rumors surfaced of a possible Greek default as early as tomorrow. While this is just a rumor, the possibility remains high that it will happen in the future. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $119.51, -2.01 (-1.65%). While this drop seems sharp, it is likely it will not accelerate in the next day or two. Even a small up move could be possible.
Secrets: Europe Is Even Worse Than The Public Knows
The markets are trading on shaky ground today. The Lehman Brothers collapse anniversary is not without some fireworks. The big news of the day came from ECB. They decided to launch a three-month loans program in coordination with the U.S. Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank. This initially caused a solid market rally but may be short lived.
The markets are floating higher after a rocky start. After initially opening higher, the SPDR S&P 500 ETF (NYSE:SPY) inched into the $118.50 level. This level was resistance and coincided with a sell-off that took the SPY down almost a full two dollars. After holding a key support line, the combination of light volume and a European rally helped the markets move back towards theirs highs.
Once the U.S. Dollar Index futures (DX U1) traded higher this afternoon the major stock indexes sold off. The Dow Jones Industrial Average just reversed a 70.0 point rally and are now trading in negative territory. Should the U.S. Dollar Index decline and sell off again the major stock indexes could reverse and move right back up.