If we didn't have bad news today, we'd have no news at all

06/23/2011 1:51 pm EST


Jim Jubak

Founder and Editor, JubakPicks.com

Bad news. And more bad news today.

Yet my suspicion is that stocks wouldn’t be down so much today, June 23, if they hadn’t been up so much on June 21. So far, today’s 1.1% decline in the Standard & Poor’s 500 (as of 1 p.m. New York time) amounts to profit taking on the June 21 move up to 1296 on the index. The current 1273 on the S&P is still above the 1265 low of June 15 and above the critical 200-day moving average at 1263.

A 1% drop on today’s list of bad news is, well, actually rather modest. U.S. initial claims for unemployment for the week ended June 18 climbed by 9,000. European Central Bank President Jean-Claude Trichet said that the Greek debt crisis threatens banks.  The euro fell and the dollar rose—which helped push oil prices below $90 a barrel for the first time since February. Oil prices were headed lower anyway after the International Energy Agency announced that it would release 60 million barrels of oil from its emergency stockpile to make up for production lost to the Libyan civil war.

I’m watching to see if the 1262-1265 level holds again. In which case stocks are in a narrow trading range as everybody waits for some “solution” to the Greek debt crisis.

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