Please enable javascript in your browser to view this site!

Uninspiring Price action, Trading ranges remain very much intact

Into Europe’s close, we’ve seen S&P trade back down to near yesterday’s lows, DJIA also down -.24% and has been very range-bound since early September while NDX’s weakness is more minor and NOT as meaningful

Among the various US indices, we’ve seen some real divergence in the last  couple weeks with NDX moving back to new highs, while SPX and DJIA are noticeably weaker(DJIA still counts, despite being price weighted, as this still has about a 90% correlation to SPX)   Breadth is around 2/1 negative in both A/D and also volume flowing into Declining vs Advancing stocks.   Sector-wise, Discretionary is making the larger decline today after being strong last week, but most of this strength came on the heels of NFLX and the TWX deal while the broader space has continued to struggle.   UA is hands down the worst performing sector today while WHR also down 11%, and other stocks like GM, AN, MHK, PVH HAR all down more than 3% within the sector which is meaningful.  (Only so much AMZN strength can do)   Cons staples and Utilities are the only 2 positive major sectors today, with WTI pullback in the last hour causing more energy weakness, while Gold still showing a minor bounce.  Overall, trends in US Dollar and 10year yields remain positive ,  but Emerging markets have still held up fairly well of late.   Overall, tough to make much of the trend in S&P here, which along with DJIA have been very choppy and overlapping of late, not the most inspiring sign for gains, and after yesterday and early am today, prices had yet again reached the highs of this recent range, making Sales better than thinking the market could extend.   For today- under yesterday’s lows of 2134.75 in SP would bring prices down to 2128-30, but really would require a violation of 2123 to expect a larger decline.   DJIA has 17895 as a larger area of support

So overall..  uninspiring technical patterns, and upside limited for the time being given the current structure, but still no meaningful evidence of any real dropoff.  Divergence will need too be eliminated as indices rise in unison on good breadth and participation to have more confidence of any rally.  No-Man’s Land continues for SPX, DJIA

Difficult to call for any meaningful lift ahead of US Elections with prices still below this minor downtrend

Difficult to call for any meaningful lift ahead of US Elections with prices still below this minor downtrend