Major averages fell on higher volume adding yet another distribution day onto the already high count. Global growth concerns continue to weigh thus central banks are likely to continue to print while the Fed pushes any rate hikes further into the future. The Bank of Japan's decision not to increase QE does not mean they cant increase it at a later date, though the issues that their negative rate environment can create may prevent their ability to push rates any lower.
The April ADP Employment came in well below expectations at 156K vs an estimated 196K. Economists used ADP’s data to get a feeling for the Labor Department’s employment report, which will be released on Friday. In other economic news, US productivity fell 1% in the first quarter, and US imports hit their lower level since early 2011.
Futures are lower by more than half a percent at the time of this writing. The Market Direction Model is currently on a sell signal as of yesterday.
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