Today is a perfect example of the kind of stock market we currently have been experiencing. Today around 3:00 pm stocks started to sell off under heavy volume. From what I can see the 3:00 pm reversal down was caused by three reasons. The price of oil breaking 102.00 per barrel to the upside, a stronger US Dollar Index, unsolved EU Debt Issues.
First let's take a look at a 5 minute one day chart of the S&P 500 (SPY). Notice the 3:00 pm sell off on heavy volume.
First let's take a look at a 5 minute one day chart of the S&P 500 (SPY). Notice the 3:00 pm sell off on heavy volume.
Below, is a chart of oil breaking out above the 102.00 dollar range. Expect higher gas at the pump soon.
Bottom Line: What we have is a very fragile market that has been moving on headline news primarily about what's going on in Europe. Couple that with high oil, and you have a market ripe for a sell off. Those who are bullish, are expecting a Santa Claus rally into the new year. I think the chances of such a rally are diminishing quickly. The headwind of high oil alone is enough to keep the market from putting in a year end rally. Thank you for stopping by.
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