18 July 2013

SP 500 and NDX Futures Daily Charts - Marked Divergence - Welcome to Hooverville

Even Ben's second day of testimony could not shake the equity markets out of their dog days lull.

Philly Fed came in better than expected as did unemployment claims.

There was a marked divergence as the SP 500 finished higher while the tech heavy NDX dropped almost 30 points.

Things are looking so good that Jack Lew, the new US Treasury Secretary, during an interview on his way to the G20 finance ministers meeting in Moscow, shared his plans to tell the Europeans and Asians how to fix their economic problems by following the US example. China must reform, and Europe must stimulate growth.

GOOG and Microsoft both missed after the bell and the tech sector is slumping in sympathy.  

The City of Detroit filed for bankruptcy.  There are more cities and states that will not be far behind.

But Jack Lew is quite convinced the worst is over, and that the field is won.    Welcome to Hooverville.