1PM Market Update for 5/24/11

Posted on by The INO.com Team

Hi, Adam Hewison here for MarketClub. Did you miss your 1 p.m. market update for Tuesday the 24th of May? Catch up now!

Here's what's happening right now in the major markets ...

S&P 500: -60. Only the longer-term monthly Trade Triangle remains intact at this time. Short-term market trend is down. Market at the lower end of the Donchian Channel. Neutral - Major Support at 1,295-1,300.Would not be surprised to see a possible bounce.

Silver: Score +55. Today's action favors more of a recovery on the upside. Spot market moved over 36.00. Bullish divergence on the Williams %R indicator confirmed. Near term support at 34.25. Major Support at $32.00. Major resistance at $39.50. Short-term rally potential up to 42.00.

Gold: Score +70. Longer term trend remains positive. The $1,520 was broken today and a close over this area indicates more upside action. Support at $1,500, $1,475 and $1,462.50. Market Trending higher.$1,533 is a 62% Fib retracement.

Crude Oil: +80 Trading range. Long term indicator remains positive. Resistance at 100.80 basis July. Choppy market. Bullish divergence confirmed on the Williams %R indicator.A close over $100 basis July is needed to drive prices higher.

The Dollar Index: Score +60. In a very broad trading range with the longer term Trade Triangle remaining in a negative position. Index reversed from resistance at the 76.50 level. Major resistance remains at 77.50. Minor support at 75.00. Possible "Dark Cloud Cover" forming today and a Negative divergence on the Williams%R indicator.

The Thomson Reuters/Jefferies CRB Commodity Index: Score +55. Near-term resistance at 344.00. Minor support at 335.00. Market oversold. Bullish divergence building on the Williams %R indicator. Trade Triangles are negative on this market.

Join me again tomorrow at 1:00p.m. ET for your LIVE and actionable update!

All the best,

Adam Hewison
President of INO.com
Co-founder of MarketClub

12 thoughts on “1PM Market Update for 5/24/11”

  1. Koos van der Merwe in an article written in TASC is suggesting that the market should be weak from September 2011 to September 2012 based on a similar pattern in 1972 on the S&P500. How do you feel about it?

    1. Jacob,

      We are neutral on the SP 500 right now. We are waiting for a signal on our Trade Triangles. Let's see how things play out. The one thing I can say is that patterns repeat themselves.

      All the best,
      Adam

  2. Right now the markets are hard to predict but your program makes it a lot easier to make decisions and to figure out stops and buy areas
    we just have to worry about flash crashes or black swans I guess
    Thanks Adam

  4. Adam, why do you prefer to use williams % r versus stochastics to determine divergences? TKS!

    1. Micky,

      Thanks for your feedback. Both the Williams%R and a Stochastic indicator are oscillator indicators and react pretty much the same way. I just happen to prefer the Williams%R indicator as it was developed by a trader who I personally know named Larry Williams.

      All the best.
      Adam

  5. Thanks Adam - this type of summary is very helpful to us folk who cannot always watch the market all day long. Seems many commodities are inversely related to the USD/Euro -- when Euro weakens, USD strengthens, and commodies drop. Is this a short term phenomenom (not linked to fundamental global demand)as investors wring hands over Greece, Ireland, etc. or are we shaping up for a commodity nose-dive?

  6. Adam,

    Can you please check the volume setting on your microphone. My volume is set at the maximum and I can barely hear you. Thursday night broadcasts are fine.

  7. When is the S&P going to head north again? this looks like acorrection of some kind.

  8. Adam,
    Because things could change between the time you write and post your 1 PM Market update sometime before 1 PM ET and, because today you wrote " Here's what's happening right now in the major markets..."- I don't know exactly what time you talking about. Would it be a good idea to add the exact time you write your comments? For example: "Here's what's happening right now (12:49 PM ET)in the major markets."
    How long have you posted your comments before 1 PM ET?
    Or, am I being too concerned with the time difference between the two events?(between your writing before 1 PM ET and your talking after 1 PM ET.
    Please advise. Peace.

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