Yesterday the S&P 500 sold off to 1091.15, coming within 1 point of 'filling the gap' creating by the euphoria of the substandard jobs report Friday. Of course with almost every bear running for cover after being beaten over the head as the market rallied on good news, average news, or bad news last Wed-Fri, very few were able to profit from it. In the overnight session the S&P 500 dipped well below 1090 but the 'urgent buyer' who frequently made visits in the 6 AM to 9 AM hour from March 2009 forward, showed his head again this morning and almost the minute Joe, Becky, and Carl showed up on CNBC the futures started popping. I'd like to see this gap filled, and worst case scenario see the 50 day simple moving average hold (this is S&P 1080) as that has been the pivot point for much of the past few months.
Remember, we are stuck in a 90 point S&P range that has defined the market the past 5 months, with only a few weeks outside of S&P 1040 to 1130. At 1090, we have 40 up, 50 down. Until we exit this range, all this movement is simply churning and a playground for traders. Investing... not so much.
Fed Beige Book is really the only economic data that has any impact this afternoon and even that is reaching - not nearly as important as the type of reports we had the previous two weeks. Same issue for tomorrow, unless weekly claims jump over 500,000 or drop below 450,000 we are in the same tail end of the "square root" recovery that we've been stuck in for a long while. So both from the domestic economy and stock market, we are in purgatory / limbo.
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