Market action continues to be very choppy as opposed to what has been
experienced for much of 2013. Futures were mildly positive at the
open but jerked around violently on a poor ISM Manufacturing report
which indicated a contraction of the sector at a reading of 49 (anything
below 50 is contraction). After some whip saw action buyers came in
later in the day and the last hour saw a lot of buying as it appears
trading were trying to position themselves for "always up Tuesdays".
Most of the leaders on the day however were broken down names in broken
down sectors, while a lot of leadership stocks didn't do much. The
S&P 500 gained 0.59% and the NASDAQ 0.27%.
The NASDAQ
continues to outperform the S&P 500 technically (a tad) even if
today the S&P 500 had the better gains; that was more related to a
lot of beaten down sectors such as utilities, consumer staples, et al
bouncing. The S&P 500 broke the 6 month trendline in purple
intraday but recovered it by the close; it remains below the 20 day
moving average.
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