fbpx Daily Commentary 6/8/2011 | Option Strategist

Daily Commentary 6/8/2011

By Lawrence G. McMillan

Tuesday's market action was extremely negative.  A rally attempt stalled out in the afternoon, and that was bad enough considering the amount of oversold conditions that existed.  But then the entire rally was erased in late-day trading, and S&P futures have continued on down another 6 points in Globex trading tonight.  There is really no way to put lipstick on that pig.  It was just plain ugly.  As a result, the $SPX chart remains in a distinct downtrend, and there is now resistance from yesterday's high 1296 up to 1310 or so, as well as stronger resistance at 1325-1330.  The 20-day moving average is falling faster now, currently at 1325.  The only potentially positive thing about the $SPX chart is that it has touched the 3-standard deviation modified Bollinger Band, indicating an oversold condition that often results in a rally back towards the 20-day moving average...

To read the rest of Larry's Daily Market Commentary, subscribe to The Daily Strategist Newsletter.

 Sign up for The Daily Strategist Newsletter

Share this

Option Strategist
Blog Search

Recent Blog Posts

Trading or investing whether on margin or otherwise carries a high level of risk, and may not be suitable for all persons. Leverage can work against you as well as for you. Before deciding to trade or invest you should carefully consider your investment objectives, level of experience, and ability to tolerate risk. The possibility exists that you could sustain a loss of some or all of your initial investment or even more than your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and investing, and seek advice from an independent financial advisor if you have any doubts. Past performance is not necessarily indicative of future results.
Visit the Disclosure & Policies page for full website disclosures.