Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Markets Gap Higher, Than Fall Back To 200 Moving Average

After a monster reversal day yesterday, the markets are hovering just slightly lower on the day. It is key to understand that markets and realize they are just like a long distance sprinter.  The markets ran a huge marathon yesterday, today they need a rest day.

The SPDR S&P 500 ETF (NYSE:SPY) just bounced off the intra day 200 moving average and is down slightly at $108.23, -$0.25 on the day.  The SPY hitting the 200 moving average was an easy scalp for those traders in the Intra Day Stock Chat as money was made.

The mega reversal yesterday does signal a possible short term change in direction to the upside after this consolidation.  Volume is very light as we inch into the mid summer months.  Light volume keeps the markets with a neutral to upside bias.

Earnings from financial powerhouse player's Wells Fargo & Company (NYSE:WFC) and Morgan Stanley (NYSE:MS) are a positive in the market while an overbought situation is keeping things slightly negative.  Apple Inc. (NASDAQ:AAPL) also reported positive earnings which is helping the tech sector slightly, but a majority of other tech plays are pulling back after the monster run yesterday.

Gareth Soloway
Chief Market Strategist