Courtesy of John Nyaradi
Stock Market News Was Terrible!
Major markets shook off bad news to rally into resistance but finish May down for the month.
Major stock indexes and ETFs (NYSE: DIA) (NYSE: SPY) shook off bad economic news to rally into resistance but the DJIA finished May -1.9% while the S&P 500 finished the month down -1.4%. To see how this fits into the “big picture,” go here: DShort.com
On the financial news front, it was a three strikes and you’re out kind of day:
May Chicago PMI takes a huge tumble from 67.6 to 56.6
Consumer Confidence falls to 60.8 from 65.4
Case/Shiller Housing Index down 5% year over year, confirming a double dip in housing.
However, markets rallied based on the hope that the Greece problem would be solved later this month. Amazing times in which we live.
In tonight’s overnight market, China reported further slowing in their economy as their PMI dropped to 51.6, barely above recessionary levels and at lows not seen for nearly a year.
ETF Technical indicators are not convinced that there is any kind of rally in the offing, and neither is the bond market as Treasuries were flat to higher. As the old saying goes, “neutral is not positive.”
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