Thursday, May 24, 2007

Closing Market News May 24, 2007

The Dow closed down 84.52 at 13,441.13 and the Nasdaq closed down 39.13 at 1537.92. Transports were 63.78 lower closing at 5135.95. The Dow high was 13,624.55 and the low was 13,423.90 for a 200.65 point range.

Total volume on the NYSE was above average trading 1.76 billion shares. Up/down volume was 4.30 to 1 negative, Nasdaq up/down volume was 6.07 to 1 negative.

June E-mini S&P futures closed down 14.00 at 1511.50 and the Nasdaq 100 futures closed down 28.25 at 1882.00. June E-mini S&P futures total volume was above average trading 1.92 million contracts. June 30-yr. T-Bond futures closed up 0-06 at 109-14.

July Oil futures closed down 1.59 at 64.18 and the June Natural Gas futures closed down 0-07 at 7.69.

June Gold futures closed down 9.30 at 653.30 and July Silver futures closed down 0.185 at 12.92.

Grains were all higher with July Wheat closed up 14 ½ cents at 4.91, July Beans were 4 ¾ cents higher closing at 8.05 ¼, and July Corn futures closed up 8 cents at 3.76 ½.

June Live Cattle futures closed down .75 at 91.10 and August Feeder Cattle closed down 1.125 at 74.900. June Lean Hogs closed up 0.275 at 74.900.

“The greater our knowledge increases the more our ignorance unfolds.”

Author: John F. Kennedy

AS I SEE IT: The market soared up to resistance after the New Home Sales report was released, and then turned down taking out short-term support. This reversal added volume, and traders who had been head faked to the upside reversed their positions, and sold the market all day. Short-term support is broken, so now we’ll have to see if this correction continues into the holiday.

Overbought conditions always correct, but many times they go on longer than most traders, including me, expect them too. Being aware that a correction might be coming pays big dividends.


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