Friends
Well, it was another volatile day for stocks and early gains turned into sizable losses, only to see the losses erased and so on… Continued weakness in shares of Apple illustrates how the market leaders have been taken to the woodshed over the last 6 or 7 weeks. Markets struggle when they lose their leaders, as this market has lost its leaders- at least for time being. Market action continues to be miserable, with rallies getting sold quickly and early strength often turning into afternoon weakness.
By the close, the Dow Jones Industrial Average was down 205 points to finish the day at 25,081. The S&P 500 was down 20 points to close at 2701. Gold was up $10 to trade at $1,212 per ounce, while oil was up $.49 to trade at $56.18 per barrel WTI.
We keep mentioning the likelihood that we might be testing the October lows (around 2600 on the S&P) or maybe we need to test the February lows (about 2532 on the S&P). Whatever the case, it might be best to get on with the test so that we can prove, or not, that the lows are in for this cycle. Whatever the case, we just have to work through this period of uncertainty (as we always do), before stocks can embark on a new journey higher.
Have a nice evening everyone.
