Market Summary ;
On Monday, the markets should have gone up and they did for awhile, then failed after hitting highs of DOW 21,506, S&P 2450 and on the NASDAQ 6303 and closed mostly lower, on the disappointing day. On Tuesday, the markets should have and did go down, because of Monday’s reversal, the Republicans failure to bring their Healthcare plan to a vote and a Global Hacking attack. On Wednesday, since nothing had improved overnight and because we had the Fed Chair, Little Janet Yellen, the Fed’s Vice Chair Stan the Man Fischer and the Fed’s Dale Evans (I think) all say that the Stock market was overvalued, the markets should have continued lower, instead the averages turned around and recouped all that was lost on Tuesday, with a wire-to-wire buying spree. Now if you believe that the Presidents, Inauguration Day crowds were the largest ever, then you can believe this was just normal market action. However, if you believe in reality, yesterday’s rally was all the work of Money Managers, marking up their books for the end of the 1st half of 2017. Since the markets are currently being manipulated to the upside, I’m guessing that we will close out the week to the upside, so the Big Money Guys, can shoot off their fireworks and tell their clients, how smart they are.
The DOW and the S&P, have traded in ridiculously narrow ranges, for the past 18 trading days and if not for the 3% correction the in NASDAQ, nothing at all would have happened. This lack of action, is very similar to the Feb, Mar, Apr, May sideways pattern, which was followed by a pop to new highs in June, for the Indexes.I think that the recent rotation of money, out of the markets winners, into the markets laggards, will set the stage for a pop sometime this summer, but in the meantime, be patient, don’t chase stocks and wait for prices to come to you.
Overnight the Global markets traded higher, the DOW is up slightly, as the Fed’s Stress Test, shows that the Banks are in good shape and can now pay their Investors, instead of just paying their CEO’S huge sums of cash. The Yield on the 10 Yr is up a tick to 2.24%, the Dollar is down, and Commodities are mixed with Oil above $45.0, but facing tougher Resistance between $45-$47.0. Today we have a GDP Revision and Jobless Claims reports at 8:30.
Today’s Early Markets
DOW Futures— up 20.00 London – up 13.58
S&P – up 300 DAX – down 4.56
GOLD—$1251 August Nikkei — up 89.84
OIL— $45.10 August HangSeng — up 281.78
DOW RESISTANCE 21,520 S&P RESISTANCE 2450
DOW SUPPORT: 21,400 S&P SUPPORT: 2432
$NASDAQ RESISTANCE 6250
$NASDAQ SUPPORT 6210