What a crazy day. I envy you folks that work other jobs for a living and dont have to watch every tick because today was nuts. The SPX ws down 25 handles and the Dow was down around 190 points until about 10.15 until things bottomed.
Here s a look at the 10 minute chart of the SPX. Nice turnaround.
So what was the reason for the rally? Many believe it was because a lawmaker from the U.K.’s main opposition Labour Party died after a brutal attack on the street in northern England, in which a witness said an assailant used a knife and gun.
Jo Cox was against the Brexit and some “pro Brexit” maniac took her life. Horrible.
It’s sad that the market would rally on this, but the takeaway was that the Brexit campaign that was scheduled for tonight would be delayed. This helped rally the British pound and other things. Sick world.
When this news was disseminated, markets of all sorts started to rally. So was the rally just a knee jerk that set off some short covering? Will we resume to the downside tomorrow again? Tough call. I will say that the indexes did see a nice recovery off the lows, but some technical damage has been done and it will take more than a news generated event to get things going again.
The dollar rallied nicely when the market was down, bit when we rallied the dollar sold off and closed on the lows.
10 year yields were down 2% to close at a 1,56% yield.
What I found to be most interesting today was the hit that gold and the miners took. I’m very happy about this and I hope it continues.
Look at the reversals today……..
GLD—As you can see it hit the top of the channel and imploded.
GDX-gold miners died too.
It can be normal for stocks to back off at major resistance, so I will take this with a grain of salt until I see follow through. Volume was huge on both though.
Oil
Since breaking its long uptrend last Wednesday, oil continued lower today. 45 support will be big. Right now its sitting on the 50 day moving average.
I’m getting the distinct feeling that we will see more of this quirky undecided action until this Brexit nonsense gets wrapped up.