Friends
The stock market seemed to be minding its own business this morning until, once again, the bond market began to sell off (rates rise) and stocks followed suit. This has been the pattern for the past several sessions. As bonds deteriorate stocks head south. One might suspect that there are some quantitative trading programs triggering stocks sales on each technical support level that the bond market violates. Nevertheless the weakness that we have seen thus far in August continued throughout today’s session.
By the close, the Dow Jones Industrial Average was down 70 points to finish the day at 15,010. The S&P 500 was down 9 points to close at 1646. Gold was down $3 to trade at $1367 per ounce, while oil was down $.60 to trade at $106.86 per barrel WTI. Traders are watching 1642 on the S&P for support, as that index joined the Dow today in breaking its 50-day moving average.
It will be interesting to see what comes out of Jackson Hole this week. In addition traders will want to take a look at the Fed minutes which will be released on Wednesday. Of course, we’ll see if the positive employment trend continues when we get the weekly jobless claims number on Thursday. So far in August, the bears have had the bulls on the run. It’s hard to imagine that this will change if the bond market continues to deteriorate. We’ll let you know how the week plays out.
Have a nice evening everyone.
