Tuesday, June 9, 2009

Stock Market Update - June 9, 2009

Another flat day for the market. Something is looming with the volume ... it was down again today for the Dow and close to even on the NYSE. There was an inflow in the DJ US Total market of $1.5 billion and we saw a 55% up volume day for the NYSE ... but there was some light selling into strength today by the ETF SPY and QQQQ. All the above was provided by The Wall Street Journal. There could actually be an answer for the declining volume other than the lack of participation of the institutional investor. We could actually be seeing volatility taking a rest ... and if volatility continues to move lower then the Dow should trade sideways to up. If we are going to see the market move up longer term ... we will need the institutional investors.
I wanted to post this for you this evening. Talk about a confirmation chart. This is an ETF for the Lehman High Yield Junk Bond. This has confirmed the movement of the S&P very closely. The S&P is in blue. At this stage of the game if I were long I would use your stops and keep them tight.

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