Thursday 28 August 2014

10am update - opening weakness

US indexes open moderately lower, with the sp' in the low 1990s. Metals are holding gains, Gold +$10. Equity bulls could sustain the low 1970s.. and it does nothing to dent the rally from 1904.


sp'60min


vix'60min


Summary

*there is a clear gap zone in the VIX.. the 15s, but that looks out of range.
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Well....despite a far better GDP number than could have been expected, market is seeing a minor down wave. At best...bears will see the market floor around 11am.

What matters is the broader trend..and that is strongly to the upside.
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*notable resilience: TWTR +2.7%..headed for the big $50
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10.01am. Pending home sales +3.3%...well above an expected 0.5%

Notable weakness: shippers, DRYS -2.8%
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10.27am... Equity bears failing (somewhat embarrassingly) to even break 1990. 

With GDP out of the way, there is nothing now until next week... aside from a few minor 'end month' trading issues tomorrow afternoon.

Metals are cooling... Gold +$6