In both directions! The DOW fought its way back to even, being led up by the financials and short covering kicked in causing a little parabolic move up. The 10 minute stochastic reached oversold and looks like it’s about to roll over.
The /ES and SPX ran right back up to the 850 level and have so far been stopped there. I want to point out that even IF the financials rally here, for whatever reason, that leadership will be temporary just as the leadership when the homebuilders began their multiple false rallies earlier. It is obvious that the damaged sectors are rolling from one to the other. We started with “subprime,” moved into home builders and all industries centered around “home,” then the financials felt the pain and have been beat down, but it is now the REAL ECONOMY that is indisputably being whacked.
The current crop of bottom fishers, like the ones before them, now see that an official recession has been called, they see HORRID employment numbers, and they use the old “can’t get any worse, the markets lead the recovery,” logic. Careful with that logic, the MATH does not agree.
Below is a 10 minute SPX chart. Note that the 10 minute stochastic is starting to roll over and there is a topping candlestick. The 30 minute stochastic, however, has much room to run upwards, so the battle in neutral ground continues. I can also see a potential 5 waves off this morning’s bottom, so be careful, my stance is neutral at this point as both bullish and bearish scenarios are still on the table.
Here is a view of the DOW weekly so you can how that situation looks prior to the close:
It's "bank failure Friday," Who wants to hold over the weekend in this casino?
Economic News , Data & Views ......March 29 , 2017.......Quick Hits For Wednesday -1) Markets : Asia Economic Calendar For Thursday , Market Moving News & Data Updated Regularly ; US - Dow In The Red Today But S&P & Nasdaq See Green , Gold Up Modestly & Oil Sees Bounce Today , US Treasuries Yield Fall Today. 2) US Politics : Russia Investigation In Congress - News Of The Day & Note Differences Between House And Senate Intel Committees ; White House Drama De Jour ; Repeal & Replace Updates ; Additional News Of Note. 3) Europe In Focus : PM May Has Article 50 Letter Delivered To EU & Related News Today ; France Election Updates & Polling Data ; Greece May Or May Not Have Reached A Deal With Creditors On Labor Reforms & Pensions Cuts ; Europe Odd News For Wednesday. 4) MENA News : Iraq , Syria , Turkey & Libya In Primary focus
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