Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
It goes without saying the action yesterday was putrid. From the overnight futures highs the S&P 500 sold off some 40 points to close at the lows of the session. Normally that would bode for a poor morning but of course the market is zipping higher to another gap, this time upward. With the exception of days like yesterday much of the moves the past few weeks have come in the overnight market with these gaps, either up or down. It remains a difficult environment and in essence the market is churning here. The closing price yesterday was in the same range as prices we saw on May 17th, there is simply a lot of violent action day to day, and week to week. In the near term, the market has worked off the oversold conditions during the quick move up and at this time the S&P 500 is in the middle of a range it has been moving around in the past month.
There is not much more to add here that has not been said the past few days or weeks – until things calm down and we see an environment more akin to January/February 2012 there is not much to do. On one side we have a slowing global economy, and the major issues of Europe. On the other is intervention after intervention.
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