Today's Stock Market Rally Only Makes Things Worse
Stock-Markets / Stock Markets 2015 Apr 06, 2015 - 05:18 PM GMT
The Primary Dealers are using this morning’s action as another selling opportunity. A lot of retail traders had layered in buy orders all the way down to 2050.00 which may have been filled on Friday. This is a ready market for the institutional players to sell into. That means once the 50-day
ZeroHedge reports, “We can't make this up. Following Friday's dismal payrolls, today's Fed Labor Market Conditions Index (the aggregate index of all Yellen's indicators) collapsed to its lowest in almost 3 years. That was just the news that stocks needed to complete the biggest opening rally of the year so far...
Worst labor market conditions in almost 3 years...”
The SPX denominated in Euros is challenging its 50-day Moving Average. US stocks are no longer moving higher in euros and are subject to the same selling pressure in Europe as they are domestically.
VIX has already completed its retracement and is starting to move higher. It is still on an aggressive seel and will not be confirmed until it crosses above the 50-day Moving Average at 15.79.
NDX was repelled by its 50-day Moving Average an its Orthodox Broadening Top trendline at 4342.54.
$USD is down, but what is even more telling is that XJY id back above its 50-day Moving Average. XJY has the ability to rally to 88.66 at a minimum. This would take out a lots of dollar longs playing the USD/JPY carry trade. USD/JPY is flat today at 119.02 after being above 120.00 last week. A further decline below 119.00 would seriously weaken the dollar in all of the currency markets.
Regards,
Tony
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