Ever since Crude Oil began rallying, the US equity markets have been encountering stiff headwinds. Today, even with crude moving lower, stocks have been unable to get much of a bounce higher although they did attempt moving higher around midday. That bounce ran into eager sellers and down it went again.
From a technical perspective, this is the first time since August of last year than the S&P has dropped below the 50 day moving average and not bounced off of it. How it closes today will therefore be closely watched by technicians to see if we are going to experience a deeper pullback in stocks than we have thus far experienced this year.
On the daily chart the big down day in late February is now looking more and more like it was the near term top in a 6 month nearly vertical rally.
"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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