The stars apparently aligned in trading yesterday, and although I still think that the equity markets will rally hard once the children in Washington come to a deal I also think that 200 day moving average may now be in play, considering that the 50 day moving average and previous swing point on the S&P 500 has been broken on higher-than-average volume. The market tracked down by about 120 basis points on declining values across all sectors sans staples and utilities.
As you would expect, the supply ruled the day in yesterday's trading. Supply was even weak in the sectors that performed relatively well. My predominant belief is that most of the downside moves in equity prices have been mainly noise related to the wrangling in Washington. However, I have seem some indications that maybe this is not the case. More on this later.
As you would expect, the supply ruled the day in yesterday's trading. Supply was even weak in the sectors that performed relatively well. My predominant belief is that most of the downside moves in equity prices have been mainly noise related to the wrangling in Washington. However, I have seem some indications that maybe this is not the case. More on this later.
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