Friends
Yesterday they were demonstrating in Spain, today it was Greece (we’ve seen this one before), and once again traders decided that they just didn’t want to buy stocks today. Actually, ever since the big rally on Fed day a couple of weeks ago, stocks have found very little sponsorship. Perhaps it’s the realization that there are a lot of headwinds here and abroad to the global growth story. Perhaps it’s the looming earnings season which promises to be somewhat challenging. Perhaps it is just the realization that QE infinity is going to have the same effect on the economy that the previous QE’s had (not much if you are keeping score). Perhaps all this is leading to diminishing returns for risk assets in the face of continuous QE (we’ve been concerned about that for some time).
Whatever the reason, the Dow Jones Industrial Average was down 44 points to close at 13,413. The S&P 500 was down 8 points to finish at 1433. Gold was down $11.80 to trade at $1754 per ounce, while oil was down once again finishing off $1.44 to trade at $89.93.
The bulls had hoped that stocks would be marked up this week into the close of the quarter. So far that has not happened. As long as the S&P can hold 1425 (the old resistance level), the uptrend is likely intact, but the bears will be looking for a break to press the action. We’ll see how the week plays out.
Have a nice evening everyone.
