Stock indexes lower

Stock indexes sold off today, mostly while Bernanke was pontificating to the senate banking committee. Apparently the market didn’t like what he was saying. There doesn’t seem to be much new about the effort to trash the dollar and bail out real estate speculators. It seems just more of the same and the market should have been able to discount all this by now. But whoever thinks the markets are efficient are professors and not traders. The Nasdaq traded back to the level of the three day pivot (yellow dot on the chart from yesterday) with main trend still down, and momentum still up by a hair. The S&P chart looks similar. The indexes are trading lower in the after-hours sessions, and trading slightly below the three day pivot, and if down on Friday the momentum will most likely turn back down in the direction of the trend. It is always easier to swim in the direction of the current rather than against it. Often the counter-trend rallies are tradeable, but they often are not worth the effort. Volume picked up slightly on the downmove today in the index etfs. I noted that volume was shrinking on the rally, which was not a good sign for the bulls. Not much to say about other markets. Gold was flat to up, and oil rallied and looking like it is edging up to the upper end of its trading range of the last three and a half months.

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