After two strong up days, the markets consolidated in the very upper range of the bounce. The early extension following the Paulson announcement of more FED action, left the S&P up about 17% off Friday's low and near resistance at the 50% retrace of the Nov slump and just below the 20 DMA, so it wasn't surprising to see some corrective action develop.
Another Obama press conference, (totally unnecessary IMO - those types of appointments - today's, not yesterday's - should be published in the papers. Press conf. implies that you have something important to say.) left the markets in a slow, choppy, limited drift. A mild last hour rebound allowed the S&P to close higher for the third session in a row (first time since Mid-Sept). The Dow also ended higher for the third day in a row but the two day win streak in the Nasdaq was broken amid weakness in Semi SMH -4%, Software -3%, Computer-Hardware -3%. But limited damage all the same.
Financial future & options close early tomorrow for the Thanksgiving Day holiday (13:00 ET). Not sure about equities/bonds.
Economic Calendar: durable orders, initial claims personal income/spending at 8:30; Chicago PMI at 9:45; Michigan sentiment and new home sales at 10:00 EST.
Hearing that there's another Obama press conference scheduled for tomorrow morning.
VIX continues to cool towards lower levels and the MACD crossover confirms the price action.
$USD continues to weaken and should pause for a breath at the 38% retracement of the last leg up. Gold and energy consolidated.
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