With the notable exception of Japan Cyprus
The European Central Bank threatened to cut off emergency funds to Cypriot banks after March 25 unless a plan is in place that would ensure the solvency of key banks. Earlier this week, a proposal to levy an unprecedented tax on Cypriot bank deposits as part of a 10 billion euro rescue plan for the country failed to win support in parliament as popular dissent mounted.
As the standoff continued, Standard & Poor’s cut its rating on Cyprus
However, late today Cypriot Central Bank Governor Panicos Demetriades unveiled a bank restructuring bill, saying it would avert “the risk of bank collapse,” help meet the conditions for an aid deal with European authorities and the International Monetary Fund, and allow Cypriot banks to reopen on March 26. His statement didn’t divulge details of the plan.
On the domestic front, Oracle reported weaker than expected quarterly earnings, and the Company’s stock promptly dropped 9.68%, which contributed to a 0.97% decline in the tech-heavy NASDAQ Index. However, despite the nightmare on Cyprus U.S.
Here are today’s closing marks, with changes from Wednesday’s close:
Thursday’s Closing Prices
Dow Jones Industrial Average 14,421.49 - 90.24 -0.62%
S&P 500 Index 1,545.80 - 12.91 -0.83%
NASDAQ Composite Index 3,222.60 - 31.59 -1.11%
Russell 2000 Index 943.92 - 8.03 -0.84%
Dow Jones Transportation Average 6,117.20 -100.99 -1.62%
Gold, Silver, and Treasury securities were all well bid today as flight-to-safety factors dominated trade. Precious metals mining stocks were among the few that posted solid gains today. The Philadelphia Gold/Silver Mining Index (XAU) rose 2.39% today.
A weekly chart sell signal was triggered at today's close in the Dow Jones Transporation Average by my computer trading system. Please see chart below. Red dots are sell signals; yellow dots are buy signals. Today's weekly chart sell signal in the DJTA is the first in this index since early June 2011.
A weekly chart sell signal was triggered at today's close in the Dow Jones Transporation Average by my computer trading system. Please see chart below. Red dots are sell signals; yellow dots are buy signals. Today's weekly chart sell signal in the DJTA is the first in this index since early June 2011.
Bottom Line: Even after seeing the Oracle news after yesterday’s NY close, I still thought there would be one more attempt to test the all-time record high in the S&P 500 Index, which was about 1% above yesterday’s close. However, today’s general market weakness, and the exceptional single-session loss in the Dow Jones Transportation Average (-1.62%) has to make any unbiased observer wonder if maybe the March 15th intra-day high in the S&P 500 Index at 1,563.62 was the peak for this advance? If Europe can get its act together overnight and find 10 billion euros for Cyprus, then maybe the bulls can regain control tomorrow to mount another attempt at the S&P 500 record high? However, the tide is clearly turning now and it is starting to look like the massive “triple top” resistance in the S&P 500 Monthly Bar Chart (March 2000, October 2007, and March 2013 see chart below) will be too much to overcome on this advance. And let me be among the first to suggest that the intra-day high for the S&P 500 Index at 1,563.62 on the Ides of March was THE top for this move and that a correction of at least 10% is now underway.
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| Dow Jones Transportation Average Weekly Bar Chart with Computer-generated Buy & Sell Signals |
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| S&P 500 Monthly Bar Chart with Computer-generated Buy & Sell Signals |
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