Major indexes posted modest losses for most of the session amid a tumble in oil prices and fresh signs of weakness, in China. The Dow slipped 17 points, or 0.1%, but it fall as fell as much as 167 points earlier in the day.
I guess the one positive takeaway today was that oil was down about 6%, but the market rallied late to close green. Unless crude really degenerates further, maybe we are seeing stocks finally disconnect from oil prices. Oil caught a bid last week on rumors that OPEC may cut production with the help of Russia, but today some of the Gulf states backed away for the rumors, hence the fall.
Google reported a nice number after the close today and is up about 5% in after market trading. Google is now bigger than Apple on a market cap basis after today’s move. Impressive.
I would consider today fairly bullish after Fridays big pop and would once again give this one to the bulls, as it was a fairly healthy consolidation day.
Th four main indexes are hitting a little resistance here, both in lateral resistance as well as some moving average resistance. The indexes are at, or just above, the 21 day moving average here, so the next move is to get above that spot. Charts below (green lines).
Nazzy
Dow 30
SPX
Russell
I’m looking at some longs, but I want to first see if the market can break out of this consolidation. We’re at an odd crossroad here because the bulls can again build a case on rates staying lower again, but I think the bears can be bearish for the same exact reason. Zero rates forever can cut both ways.
Many stocks are coming off bottoms, so for the time.
I kept AMSG on as a short probably until tomorrow as it closed just a nickel above the stop. Right now its at the top of the flag and right at its 200 day moving average resistance. If it fails , it should do it here, if not I’ll make a decision tomorrow.
I added NFLX today as a new long.
I will have a full video recap out at some point tomorrow. Have a great night.
Joe