Yesterday’s trading was a bit unusual and for a market that has Money Managers and their Machines, pushing a handful of their favorite stocks higher every day, while at the same time, throwing some out-of-favor names, out the window on a daily basis, so calling yesterday’s trading a bit unusual, is really saying something. So yesterday, the averages opened strongly right out of the gate, with the DOW, S&P and NASDAQ setting new intra-day record highs in the first few minutes and it looked like the markets were all set to shrug off Halloween’s, downtown, terror attack and just go on about its business trading higher. However, by 9:45am, the NASDAQ started to give up its opening gains and by 10:35 the market leading NASDAQ had reversed to the downside, taking the opening rally with it.
The Indexes all turned lower, but firmed and held minor gains to close out the day, but having the markets leaders, quickly reverse and close lower for no particular reason, must have some Institutional Players thinking a bit more seriously, about taking some cash off the table. Technically yesterday’s NASDAQ reversal, has that Indexes Stochastic pattern, completing a negative “M” pattern, that could trigger a pullback down to the 6600 level. Now a minor 100 pt drop in an Index, that’s up over 500pts since August, is no big deal, but with only 2 months left in 2017 and a lot of Managed Money in just a few stocks, a rush toward the exits for what-ever reason, could trigger a full-blown correction, so pay attention.
Overnight the Global markets were mixed, as Investors wait to hear the BOE Rate Decision this morning and contemplate , who the President will pick for the next Miss Universe/Fed Chair. In early trading the Indexes are off slightly, the 10 Yr Yield is flat, the Dollar is down and Commodities are flat. Yesterday Oil ticked as high as $55.22, before turning down, which may signal and end to Crude’s recent Oct. rally from $49, but if Oil can dig in above $53 and turn higher, the markets may get a big Xmas present from the Oil Patch stocks.
Today all we have are the Weekly Jobs report and the 3rd Qtr Productivity numbers at 8:30 and a bunch of earnings, with DOW, S&P and NASDAQ component AAPL reporting after the bell.
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Today’s Early Markets
DOW Futures— down 12.00 London – up 11.58
S&P – down 150 DAX – down 22.76
GOLD—$1276 Dec Nikkei — up 119.84
OIL— $54.20 Nov HangSeng — down 75.45
DOW RESISTANCE 23,520 S&P RESISTANCE 2588
DOW SUPPORT: 23,350 S&P SUPPORT: 2572
$NASDAQ RESISTANCE 6760
$NASDAQ SUPPORT 6700