US Stock Markets Update Date 6-14-11

I commence with my gratitude to The Creator

The April lows of S&P 1,294 and Dow 12,093 , represent the near-term bull/bear battleground. For SPX, first significant resistance holds at the April low of 1,294, next resistance is at $1,313 and 1,32o area, while modest support rests at 1,265, matching this week’s lows. In the case of Dow, initial resistance holds at the April low of 12,093, and is followed by additional overhead around 12,180. The Nasdaq Composite’s near-term backdrop remains the weakest. First resistance holds at 2,670, and is followed by more significant overhead just above the 2,700.

Overall, The S&P’s downdraft initially accelerated with its violation of support at 1,313. This area now marks its breakdown point. The June downturn has included a 20-to-1 down day and a 13-to-1 down day on the NYSE. These sell-off are the signals of a potentially significant trend shift. The sell-off has been driven by a sustained volume increase, including the S&P’s three strongest-volume sessions in many months. The S&P has established a series of “lower highs” and “lower lows,” also signaling a trend shift.

Next target 1,251 on further selling and then next ones are 1,215-1.220 and then 1,188 area. Markets are just experiencing a relief rally and shorts locking in the profits.