It Tried

The title said it all. Whomever and whatever it is, it tried to fool the market participants into believing the market has the strength to continue to make new all time high. It tried to over shadow the market’s natural movement by injecting manipulative money into propping up the indices. Fortunately, the market always reveals to us what it is doing. The market shows us not by how much gain the indices have attained, or how high the indices have reached. Instead, it shows us through its breadth indicators how weak it is and how concentrated is the manipulative liquidity.

Today, the Dow Jones Industrial Average (DJIA) closed at another non-confirmed new all time high, its seventh in the last eight trading sessions. Similarly the SP500 (SPX) closed its sixth new all time high in the last seven sessions. The SP500 almost did not close with a new all time high. It fluctuated between positive and negative in the last 10 minutes of trading. Only in the last minute of trading the index was pushed into the green by some last minutes buying. The SPX ended the session with a gain of 1.08, while the DJIA closed with a gain of 40.60. The NASDAQ 100 (NDX) closed with a gain of 18.08, and the Russell 2000 closed with a loss of 11.05. Both market, the NYSE and the NASDAQ have almost twice as much declining issues than advancing issues. This advance-decline issues ratio reveals how distorted the market is.

As the market indices fall in line with what the breadth indicators are telling us, the following charts highlight the price level to watch for the SP500, the Russell 2000, the VIX along with their respective ETF, and the gold futures.


SPX:

(click on the chart to enlarge)


SPY:



RUT:



IWM:



VIX:



VIXY:



GC_F: