Ahead of the open (16-12)
Friday, December 16, 2011 at 01:00AM A morning footnote ahead of the trading day was Global PMI’s coming in better than feared, a barrage of US eco’ data followed again surprising above consensus estimates, plus the market got a FDX report that came in ahead of the street.
Nothing like positive readings after a 3 day/ 3.6% SP sell off to rally the markets for a day!
Wrong!
Unfortunately, what should be a day rally lasts about an hour these days, any upside today was foiled at 50ma intraday as buyers seem to have packed away for the year. Luckily, sellers are not in abundance either leaving no conviction on either side of the trading desk.
Not expecting much to close off the week with expiration/ index rebalances. Still, considering market settled down some, the unwind trade continued with Gold, Oil down again. You’d think those 2 will reverse some next from oversold conditions and allow market to make another push to the converged 20/50ma to close off the week. Overall this wouldn’t make the longer term picture any brighter.