JV Research LLC. Wednesday, March 14, 2018
After a big rally on Friday, the DOW and S&P retreated on Monday, while the NASDAQ and Russell 2000 plowed higher for the 7th day in a row. Yesterday, after a benign CPI and Core Inflation report for February, Iand anyone else who could read a Chart, figured that we would see a rebound in the DOW and S&P and a pullback in the overbought and extended NASDAQ and Russell 2000. Well, the markets opened higher, ignoring the firing of the Secretary of State and Investors seemed comforted by the good Inflation news, so it looked like we were in for another good day. Unfortunately, by 11:00, the goodwill generated by the Inflation reports
dissipated and the markets started to dwell on the uncertainty spewing out of the White House on Trade, Tariffs and who’s in, who’s out and who’s left of the President’s original “Best and Brightest” Cabinet picks.
Anyway, the early rally was over and the only question was how much would the averages give back and by the end of the low volume, orderly decline, the Indexes closed right at their Supports at DOW 25,000, S&P2765 and NASDAQ 7510. Overall, the damage was minimal, but the day’s reversal top the downside on good news, illustrates that the markets are no longer immune to issues coming out of Washington and unfortunately,there are many issues coming out of Washington.
Coming into the week, the Indexes Technical picture could not have been more perfect, with the DOW and S&P poised to trade higher, with minor corrections expected for the NASDAQ and Russell. Now, after 2 mixed trading day’s, the Technical picture is a choppy mess and you would be better served, by tossing a coin in the air and calling heads or tails, to determine the day’s outcome.
Overnight, the Global markets were mixed, with Asia lower and Europe higher and in early trading the DOW is higher by about 90pts. Yesterday’s good Inflation report sent Bond Prices higher and Rates lower, with the 10 Yr back down to 2.84%, the Dollar is lower and Commodities are mixed.
Today we have the Feb Retail Sales and Producer Prices (PPI) reports out at 8:30, followed by the January Business Inventory report at 10:00 and at 10:30, the Weekly Oil Inventory report is released.
I am working from 80 Broad and can be reached at 212 -417-8062
Today’s Early Markets
DOW Futures— up 90.00 London – up 13.58
S&P – up 500 DAX – up 37.76
GOLD—$1320 Apr Nikkei — down 190.89
OIL— $61.00 Apr HangSeng — down 166.65
DOW RESISTANCE 25,250 S&P RESISTANCE 2780/2790
DOW SUPPORT: 24,900 S&P SUPPORT: 2750
$NASDAQ RESISTANCE 7560
$NASDAQ SUPPORT 7460