Stock Market Update - June 12, 2009

And we wait ...
And we wait ...
And we wait ...

The market has a mind of its own. Every indicator has peaked or has peaked and is moving down. Money flow (in blue) is moving back down on the Dow. On Friday the money outflow for the total US DJ Market was just over $300 million and it was a 53% volume down day (obtained from The Wall Street Journal). On the NYSE 69.5% of all stocks are over their respective 200 moving average in price ... that last time this occurred it was the summer of 2007. Volume is drying up almost completely ... see the bottom chart.

As long as we see support for High Yielding Bonds or Junk Bonds I think the market is going to have some overall support.

Here is one of the culprits holding the market back ... its the US Dollar. I believe that it is possible the Dollar is going to trade in a range over the next few days.

Look where the market was heading the last few times volume was this low on the NYSE. The blue line represents a 7 day moving average for volume and the black line is the S&P 500 daily closing price. The bottom indicator is the actual daily NYSE volume. The only other answer for volume is that volatility is leaving the market.