A Curious Equilibrium

• Posted by Robert Sinn
• on July 23rd, 2012

Given the multitude of counterbalancing forces currently impacting global financial markets it seems somewhat fitting that the S&P 500 ($SPY $SPX) ended today’s session exactly in the middle of two key reference points which also happen to be the two highest volume by price levels of the last nine months – 1325 (7/12 low) and 1375 (7/3 high):

 Click to enlarge

Moreover, there is a rare equilibrium in the percentage of NYSE stocks trading above their respective 200-day moving averages:

 

52.25% of NYSE stocks are currently above their 200-day moving averages which also happens to form a perfect confluence with the 50 and 200 day SMAs on the above chart. There are many other examples of charts at or near key breakout/breakdown levels such as the gold ($GLD)/silver ($SLV) ratio:

With so much energy building the current curious equilibrium across markets is unlikely to last much longer.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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