Stocks were smacked on Tuesday after the Senate finally passed the debt bill. It was disconcerting to see all the major averages slice and close below their respective 50 & 200 DMA lines which suggests the bears are getting stronger. The technical action is ominous which bodes poorly for the near term outlook. Looking forward, the next level of support are the 2011 lows and the next level of resistance are the 2011 highs.
Senate Passes Debt Bill, Same Store Sales, & Personal Spending/Income Miss Estimates:
Stocks opened lower on Tuesday as investors across the globe were concerned that the global economic recovery may be in jeopardy. The International Council of Shopping Centers said its weekly measure of same store sales at major retail chains slid -0.3% on a weekly basis but rose +4% vs. the same period last year. Both measures fell short of the Street’s estimate for a gain of +0.3% and +4.2%, respectively. The Commerce Department said both spending and income were soft in June. Spending contracted -0.2% which missed estimates for a +0.1% gain. It was also the largest drop in spending since September 2009. The report also showed that personal income rose +0.1% which also missed estimates for a gain of +0.2%.
Market Outlook- Market In A Correction
The latest action in the major averages suggests the market is back in a correction as all the major averages are flirting with their respective 200 DMA lines. Our longstanding clients/readers know, we like to filter out the noise and focus on what matters most: market action. That said, the recent action suggests caution is paramount at this stage until all the major averages rally back towards their respective 2011 highs. If you are looking for specific help navigating this market, please contact us for more information.
Host Of The #SmartMoneyCircle Podcast, Founder and CEO of 50 Park Investments. Adam provides weekly market updates to ChartYourTrade.com readers. He is a FORBES Contributor and is a frequent guest on all the major financial media outlets.
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Disclaimer: All communication from ChartYourTrade is general in nature and for educational and general informational purposes only. Under no circumstance should it be considered personalized investment advice. All our work is general in nature and not specific to any one person. All the information on this site and/or that originates from us, or any of our partners or affiliates, is for educational and informational purposes only and is NOT a recommendation to buy or sell anything. To avoid any conflicts of interest, we do not have a working relationship with any of the companies mentioned in our work. Furthermore, we may have a long, short, or no position in any, or all, of the names that appear in our work and they may change at any time without notice. Investing and trading in capital markets or using margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you as well as for you. Before you decide to invest or trade in capital markets you should carefully consider your investment objectives, level of experience, and risk appetite, among other factors. The possibility exists that you could sustain a loss of some, all, or more of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with capital markets, investing/trading, and seek specific investment advice from an independent financial advisor and other professionals. Remember all the information we provide is for educational and general informational purposes only and is subject to change without notice.
Selling Continues On Wall St- 200 DMA Line Smacked
Tuesday, August 2, 2011
Stock Market Commentary:
Stocks were smacked on Tuesday after the Senate finally passed the debt bill. It was disconcerting to see all the major averages slice and close below their respective 50 & 200 DMA lines which suggests the bears are getting stronger. The technical action is ominous which bodes poorly for the near term outlook. Looking forward, the next level of support are the 2011 lows and the next level of resistance are the 2011 highs.
Senate Passes Debt Bill, Same Store Sales, & Personal Spending/Income Miss Estimates:
Stocks opened lower on Tuesday as investors across the globe were concerned that the global economic recovery may be in jeopardy. The International Council of Shopping Centers said its weekly measure of same store sales at major retail chains slid -0.3% on a weekly basis but rose +4% vs. the same period last year. Both measures fell short of the Street’s estimate for a gain of +0.3% and +4.2%, respectively. The Commerce Department said both spending and income were soft in June. Spending contracted -0.2% which missed estimates for a +0.1% gain. It was also the largest drop in spending since September 2009. The report also showed that personal income rose +0.1% which also missed estimates for a gain of +0.2%.
Market Outlook- Market In A Correction
The latest action in the major averages suggests the market is back in a correction as all the major averages are flirting with their respective 200 DMA lines. Our longstanding clients/readers know, we like to filter out the noise and focus on what matters most: market action. That said, the recent action suggests caution is paramount at this stage until all the major averages rally back towards their respective 2011 highs. If you are looking for specific help navigating this market, please contact us for more information.
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Disclaimer: All communication from ChartYourTrade is general in nature and for educational and general informational purposes only. Under no circumstance should it be considered personalized investment advice. All our work is general in nature and not specific to any one person. All the information on this site and/or that originates from us, or any of our partners or affiliates, is for educational and informational purposes only and is NOT a recommendation to buy or sell anything. To avoid any conflicts of interest, we do not have a working relationship with any of the companies mentioned in our work. Furthermore, we may have a long, short, or no position in any, or all, of the names that appear in our work and they may change at any time without notice. Investing and trading in capital markets or using margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you as well as for you. Before you decide to invest or trade in capital markets you should carefully consider your investment objectives, level of experience, and risk appetite, among other factors. The possibility exists that you could sustain a loss of some, all, or more of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with capital markets, investing/trading, and seek specific investment advice from an independent financial advisor and other professionals. Remember all the information we provide is for educational and general informational purposes only and is subject to change without notice.
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