Hello traders everywhere. Adam Hewison here, co-founder of MarketClub, with your 1 p.m. market update for Thursday the 23rd of June.
Choppy, choppy, markets. Today's action should be viewed as a test of the lower range in the S&P 500. This market is very close to breaking the 200 day moving average. Many traders consider this to be one of the most important long-term technical indicators for the equity markets. The exception to this is the NASDAQ that is already below the 200 day moving average and looks like we're going to see further downside action. The other big news was the sharp drop in precious metals. We were warning about this in our commentary yesterday as gold was grudgingly going up and up, popping above the upper levels of the Donchian channel. The release of 30 million barrels of crude oil will last about a day and a half in the US. This action can only be viewed in my mind as a desperate measure to win popularity for the current administration. I have seen many times in the past that when governments get involved in the markets, they never come out ahead. As we said in yesterday's video, a low risk entry point for short term traders should be around $90.07 at the bottom end of the Donchian channel.
Gold hasn't lost its shine, but Crude oil took a hit today. Watch Adam's 1 PM update to get a detailed account for all of the big markets:
MarketClub TV has been canceled this week due to scheduling. Adam is leaving tomorrow to celebrate his daughter's wedding this weekend, so I guess we will let him off the hook. In place of MarketClub TV, Adam will be recording a video to cover all of the major markets to keep you on your toes for the rest of the week. That video will be posted to the blog later this evening, so be sure to check in later. Also, Susan will be bringing you your 1 PM updates for the remainder of the week. Have no fear...MarketClub is here!