Tuesday Outlook: Bulls Awash in Liquidity

June 29, 2009



I thought this deliberate end-of-month/quarter shenanigans was against the rules, right? Oh, they don’t enforce this type of activity—never have, never will.

Anyway, with volume ultra-light, or absent bullish news for that matter, propping markets can be done with ease since it takes just a little paint to push things in the desired direction.

Breadth was positive but volume was beneath significant.

click to enlarge





The intermediate to long range outlook was rolling over as shown below on the McClellan Summation Index but now appears to be stabilizing.
















Current market conditions are well articulated on this CNBC video by Larry Levin and echo things we and others have been saying for a long time.

Another technical indicator we use is DeMark weekly sequential 9 counts. Their intent is to indicate trend exhaustion or a waypoint in the prevailing trend. DeMark indicators used in this manner either shows a potential trend change or just a time to rest by moving sideways. Below is from our internal SPY weekly chart which features the latest weekly 9 count from mid-May. Since you can see we’ve basically moved sideways even if the movement has been erratic. The previous trend higher could always resume now that a “reaction” has taken place or even reversed. It’s impossible to predict at this point and Mr. Market has to show the way.
















































Go to page 2 - Commodities, Global Markets >>

Comment on this article >>