28 June 2012

SP 500 and NDX Futures Daily Charts - Apply Paint to Tape In Afternoon For End of Quarter

Stocks spent most of the day much lower as the equity market did not get the expected 'pop' from the overturn of the Affordable Healthcare Act. There is intraday commentary on that, but suffice to say that Robert Reich was one of the few who read the tea leaves on that one correctly.

Stocks were a bit weaker after the Q1 GDP came in flat, but few noted the chain deflation increased from 1.7% to 2.0% which is quite an increase with no effect on the real GDP.

The market rallied in the afternoon quite strongly and surprisingly. There is almost no doubt in my mind that this was end of quarter tape painting as I had said although there is late word that the European leaders may have reached some agreement on a 120 Billion euro package..

So where does that leave us? Still concerned about Europe. I expect heavy action tomorrow and a lot of cross currents, and more light volume shoving and pushing as the adults leave early to head out to the beaches.