Stocks tried to come off the recent new session low but had no success. A steady trend lower from the open has the indices down from 1% to 2.5% with of course growth taking the brunt of the damage.
SP500 -34.48, -1.23%
NASDAQ -156.70, -2.08%
DJ30 -253.89, -0.97%
NASDAQ 100 -2.08%
Some blame the Director of Trade Peter Navarro for the selling, pointing to a speech he gave today that discussed in detail the tariffs, their impact, China, etc. Basically from what he said, the likelihood of a deal with China are rather remote given that he said if China stopped stealing IP and adopted the structural changes the US asks for it would amount to existential change for that country. So, again, what are the prospects now for a trade deal . . . this decade?
That added to the PPI spike and the weaker preliminary Michigan sentiment leaves investors with no desire to buy ahead of the weekend.
The action has SP500 at the 200 day MA. DJ30 at the 50 day SMA. NASDAQ has filled the WED upside gap and thus far is holding over support at 7300 -- though there are still 60+ points to get to 7300.
At least SP400, RUTX are working on forming a right shoulder to potential inverted head and shoulders patterns. Cold comfort for investors on this session after that sharp WED follow through upside.
This is still very much in line with a post-follow through pullback though no one wants to venture bids today.
We took some gain on MCD as it has put in a nice week of gains. Looking at banking some of the WMT option gain as well given its week+ move upside. Given two days downside heading into the weekend there could be a bit of a late short covering move, but not anticipating any big groundswell that changes the day's character. It looks as if there is some covering going on right now as this is penned.
Jon Johnson, Chief Market Strategist
PLEASE DO NOT REPLY TO THIS EMAIL. USE THE CONTACT US PAGE ON OUR WEBSITE.
Customer Support: http://investmenthouse.com/contact_us.php
Post a Comment