Morning Market Review 8/2/2011

The Dow Industrial Index was up +0.57%. Once again volume was well down. Last week snow was blamed for the lower volumes on the New York Stock Exchange. Today, however, weather was back to "normal" - but volume wasn't. It was up a bit on Friday's effort, but still low. That's not a good sign for the continuation of this rally.

The Dow Transport Index, once again, underformed the Industrials, up +0.3%. Again - not a good sign for the continuation of this rally.

On the positive side, the Russell 2000 outperformed, up +1.03%. That gives some hope to the bulls. But, after six days up, can there be too many more? Yes - of course - eleven days up is possible - but not highly probable.

Interestingly, the VIX also went up today, +2.2%. When the S&P500 and the VIX rise on the same day - often the next day is down.

Gold in Ozzie Dollars was up overnight, +0.6%. That's also a negative influence for our market today.

Good luck

Red