June 17, 2013
Weekly Market Outlook
By Keith Schneider
Equity markets all over the globe have experienced some serious volatility after the Hindenburg indicator fired off several weeks ago. Shortly after the indication the markets swooned. However, we quickly pointed out that our short term indicators were deeply oversold, and therefore a bounce was in the cards based. A vicious 450 plus point Dow rally from the June 6 intraday lows ensued, but again lost altitude on Friday. Now the jury is hung on how things will play out, but one thing is for sure - the technical pattern is most interesting and prices are not stable at these levels.
The big rally on Thursday was fueled by decent news on the retail sector in combination with bonds yields dropping. That had the effect of an IED. The stock market really enjoyed a respite from the specter of higher rates and talks of the great bond bubble blowing up.
It appears that bond market took notice to the IMF reprimand this week, warning the powers that be in Washington that cutting spending too rapidly was a threat to the faltering global recovery. Christian Lagarde, the classy head of the IMF also urged Bernanke to the keep the monetary spigot on full blast over those concerns as well... Let’s see how Ben responds next week.
Check out this week’s video to see one of the more interesting chart patterns we have seen in while.
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