The S&P has to go down before it makes a major move up. Today the market broke below support at 1960 to make a one-week low at 1956.50.
We saw traders selling good earnings beginning last week. That has continued and now they seem to be selling good economic news as well. The US economy just reported a 4% growth rate for Q2, higher than expected. And as the news came out, traders began taking profits and triggering sell programs.
So far we have not seen the end-of-month buying by mutual funds that we typically see. In this climate, they are likely waiting for lower prices. Tomorrow we’ll get another raft of economic reports leading to Friday’s jobs numbers. It may all amount to more good news for the market to sell, but expect continued volatility such as we saw today.
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HIGH: 1974.00 Early
LOW: 1957.00 Mid-Day
LAST: 1965.50 UP 2.5 Handles
TOTAL VOLUME: 1.75 mil minis; 3.8k bigs
MOC: SELL $400mil
FOR TOMORROW:
Challenger Job Cut Report
Gallup US Payroll to Population
Jobless Claims
Employment Cost Index
Chicago PMI
EIA Natural Gas Report
3-6 month Bill Auction
Farm Prices
FED Balance Sheet and Money Supply
Jobs Friday
U.S. economy grew by a 4% rate in second quarter beating expectations – They sold the news.
Range trade: 1960 – 1985 broke today.
Been all selling going into July month end.
No buying at month end?
Remember, the S&P has to go down to go up…