By Gareth Soloway on July 16th, 2010 12:55pm Eastern Time
The SPDR S&P 500 ETF (NYSE:SPY) pulled back perfectly to the 20 moving average today as fear crept back into the markets and options expiration came to a close. The markets have seen a meteoric rise in the last two weeks as the retail put buyers saw their profits vanish. The markets are hovering just off the lows of the day on the 20 moving average, just a day after the markets hammered into the 50 moving average on the upside. The SPY is lower by 2.20%. Economic news continues to be poor and earnings are mediocre. In addition, the Chinese Shanghai Index has yet to see any sort of bounce. This is and has been a warning sign for the world markets. Gold, SPDR Gold Trust (ETF) (NYSE:GLD) is dropping sharply after a beautiful consolidation in spirit of bear flag pattern formed. Oil, United States Oil Fund LP (ETF) (NYSE:USO) is also getting hit and the dollar is slightly higher.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
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