Written by Gary
Markets made a sudden spike upward at 12:30 pushing the DOW and SP500 to new historic highs on news of reports that the European central bank could be preparing a new stimulus package for its meeting next month.
By 4 pm the markets closed in the red with the large caps flat and $RUT down over -0.5%. Volume today was moderate, but the swings were a traders delight and we will probably see more of this action in the coming sessions.
US stocks pare losses on reports ECB plans big stimulus package; Barnes & Noble drops
NEW YORK (AP) – U.S. stock indexes recovered most of their losses after news outlets reported that Europe's central bank is considering unveiling a stimulus package next month. The Dow Jones industrial average fell 12 points, or 0.1 percent, to close at 17,900 Thursday.
It had been down almost 100 points earlier. The Standard & Poor's 500 index lost two points, or 0.1 percent, to 2,071. The Nasdaq composite declined five points, or 0.1 percent, to 4,769. Bloomberg News said the European Central Bank is considering a large bond-purchasing program.
That would be a relief to investors, who have been worrying that Europe could slip into a recession again.
In the U.S., Barnes & Noble fell 5 percent after the company said it was ending its agreement with Microsoft for its Nook e-reader.
Our medium term indicators are leaning towards sell portfolio of non-performersat the close and the short-term market direction meter is bearish and has been all day. We remain mostly conservatively bullish, neutral in other words. Right now now I am getting very concerned any downtrend could get very aggressive in the short-term and any volatility may also promote sudden reversals. The SP500 MACD has turned down, but remains above zero at 21.64. I would advise caution in taking any position during this uncertain period and I hope you have returned your ‘dogs' to the pound.
