Volatile Markets

The markets recovered from earlier losses today as fears of Japan's nuclear reactors core was exposed for some time.  The S&P 500 was down -2.70% at the open this morning and finished down just -1.12% on the day with heavy volume.  The US stock markets have been resilient in spite of Japan earthquakes, middle east tension, and emerging market inflation fears.  Below is a chart of the S&P 500 fund (SPY).  It currently trades above support but below the 50 day moving average.

Bottom Line:  I will be watching the Japanese Nikkei Index stock market for any signs of recovery after a -20% sell off in just two trading days.  A bounce in Japan could bode well for US stocks in the coming sessions. 

 

Contact:  586-431-8000

Tuesday Update

Today was all about oil and the transportation index selling off.  Oil tends to spike for several reasons such as geopolitical concerns, the US dollar, and speculation are prime drivers that can move the oil market.  The transportation sector is highly impacted by the moves in the oil market.  Below is a chart of the oil index on top and the transportation index below.  As oil has made a new multi year high the transportation index has sold off hard, approximately -8.49% in just a few weeks.

Bottom Line:  Oil has been on a tare, and the transportation index is leading the market lower.  I think the market will be under pressure until the oil market pulls back.  Thank you for reading.