Friends
The bears seemed to have been awakened from a multi month nap this morning, ironically after an early rally at the open. The Dow had been up triple digits before a plague descended upon the markets and by midday the Dow was sporting a 400 plus point loss. Some buyers did appear to lessen the damage, but the bears still held the high ground at the close. It appears headlines heralding a U.S.- China trade deal are experiencing diminishing returns. The possibility certainly exists that we’ve priced in the good news already and that we might be experiencing the early stages of a sell the news response.
As for today, by the close the Dow Jones Industrial Average was down 206 points to finish the day at 25,819. The S&P 500 was down 10 points to close at 2,792. Gold was down $11 to trade at $1,288 per ounce, while oil was up $.70 to trade at $56.50 per barrel WTI.
It will be a busy week for economic data as we’ll get non-manufacturing (service sector) ISM and PMI numbers tomorrow as well as new home sales. On Wednesday we get the ADP private payroll number and then on Friday the all-important non-farm payroll number. The bears reminded everyone that they are still in the game, as the 2800 level on the S&P may yet again turn out to be a formidable resistance level. Let’s see if the bears can force the action as the week unfolds.
Have a nice evening everyone.
