Wednesday, July 8, 2015

Halt, NYSE!

The Market Trend Model (data sheet) continues to show a negative bias as the ongoing Greek debt crisis (article) and the Chinese stock market panic (article) dominate financial headlines.  Even the U.S. stock market had its own crisis today when the NYSE halted all floor trading for more than 3-hours (article).

Even though Tuesday trade saw one of the biggest stock market reversals in about 4 years, today's trade took the market indexes right back to yesterday's lows. Today the Russell 2000 (chart) traded below its yesterday low and illustrates just how weak the stock market is currently. Today the Nasdaq (chart), the Nasdaq-100 (chart), and the S&P 500 (chartalso moved lower to areas right around their yesterday lows.  It would appear any further price declines tomorrow may trigger stop loss selling for those who were bold enough (or foolish enough) to buy into yesterday's afternoon spike.

As I see it, at the moment the stock market is in treacherous territory and prudent speculators are best suited to stand aside and let the dust settle before committing capital to stocks.  As always, remain mindful that anything can happen from one day to the next.