4:00 pm ET: Results of Spanish bank stress tests combined with weak domestic economic numbers sank the market on open. The major averages did recover some ground but began giving it right back as traders seemed reluctant to stay long over the weekend. The overall tone could be changing from bullish to bearish as the DTX appears that it might close below 490. Adding another nail to the bull coffin is the VIX where the preferred direction now appears to be up (a negative sign). A continuation in both of these trends would be a sign that the bears are taking over.
The big news today in commodities was that wheat and corn inventories are lower than expected. Really??? With the most severe drought in years, this was big news? Hard to believe, but there it is. The news boosted the corn etf (NYSEARCA:CORN) and the grain etf (NYSEARCA:GRU) which had been sliding. Both gained were up as much as 6% in intraday trading. The question now is whether this jump is the start of a new rally or just a speed bump in the continuing downward slide.
Not much else is happening. Have a good weekend!
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