The NightCap
The Market: Global concerns sparked an initial move lower in early trading but the markets found support near the $2070 region in the SPX and then managed to finish the session slightly higher. Energy (XLE) was the clear leader on the WSC Scoreboard followed by Retail (XRT) and Materials (XLB). Transportation (IYT) lagged hurt by the State Department’s travel ban issued late Monday in response to the recent geopolitical events. After making a low in late August, the XLE rallied until early November and has since held in well consolidating below the November 6th high. XLE may be setting up…
$50 is the new $5….
The Market: As expected, volatility continues and $50 point swings are becoming as common as $5 point swings use to be. We expect volatility to remain high but would not be surprised to see the magnitude of the swing start to temper. Today was important because after two straight days of gap ups that sold off into the close, today managed to hold and extend on the gap after an intraday pullback. As we noted in Monday’s write-up, the market is very short-term oversold and we would expect a bounce so today’s action is not surprising but we will be…
SPY is sitting on the 50 day SMA
Index & Sector performance 9/23/14 The Market: U.S. led airstrikes in Syria and weaker than expected European manufacturing data helped continued weakness in the broad markets with the Russell 2000 (IWM) again leading the way to the downside. After peaking back positive YTD in late August and into early this month, the IWM is now down 3.46%. The NASDAQ (QQQ) was the clear winner, on a relative basis, and was helped by a strong showing in Apple (AAPL) which closed up 1.56%. The S&P 500 (SPY) is now near, essentially at, its 50 day SMA and we are very interested…
Daily Wrap
DJIA -42.55 (-0.28%) to 14,932.41;S&P 500 -0.88 (-0.05%) to 1,614.08;NASDAQ -1.09 (-0.03%) to 3,433.40 The S&P 500 started today looking as though it was going to recover well from yesterday’s late day sell of but again around Noon EST the market lost momentum and declined into 2:30 Pm EST where there was then a bottom and late day small rally which took the major indexes near flat for the day but well off the highs. In economic data, Total Vehicle sales bested expectations coming in at 16M units sold and tomorrow ADP employment numbers come in with an estimate of 161K. The official…
Daily Wrap
DJIA +38.16 (+0.27%) to 14,127.82; S&P 500 +7.00 (+0.46%) to 1,525.20; NASDAQ +12.29 (+0.39%) to 3,182.03 Today started on a down note but landed the S&P 500 right into its 20 day SMA which it promptly held and started to make its ascent for the remainder of the day. We had no noteworthy economic news today and frankly not much is really on tap tomorrow. The market will be left to its own devices and whether or not it can continue to press higher. I will have more below but the futures chart is trying to build a case to argue for higher levels….