Stock indexes lower, Oil to the moon, Dollar lower

indexes0520.pngStock indexes fell right from the open today, but closed well off the lows of the day. It seems the stock indexes lately are making turn-around moves mid to late in the day, thus leaving buying or selling tails. It’s nice when the bulls or bears win a decisive victory and the indexes can close at the opposite ends of the bar. But these markets don’t want to make it easy. There was a good move in the options on these markets if one could have positioned the previous day and gotten out just when it looked like the markets were going to go into a free fall. But as it turned out on the daily charts, if one had purchased puts on the open, there was little profit by the close. I don’t mean to be advocating daytrading by saying that. There are more times when a turn-around during the day will knock you out of a profitable trade, and then the market will put in a large trend day and close at an extreme. Momentum is down in all the stock indexes, most with bearish divergences, and trends all remain up. Volume is about even on up and down days. I’ve been expecting a pullback into the moving averages. If the very overbought oil market would pullback, the stock indexes could get a lift and postpone that scenario. I wish I could be more specific, but I can see the indexes moving either way short term. I prefer trading with momentum in the direction of the trend. Gold bounced on the renewed selling in the dollar. There could be some short term trend changes in these markets. I’ll post charts in a day or so.

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