Major averages closed mixed yesterday and in the lower half of their respective trading ranges on lower, though above average volume. The Russell 2000 Index undercut its prior late August lows while the S&P 500 Index pulled down to a point that is roughly even with its own late August lows, all of which naturally sets up the potential for a reaction bounce, and we are seeing that this morning in the futures. Futures are up more than 1% at the time of this writing as Chinese consumer sentiment came in above expectations. European markets are consequently up more than 2%.
It seems as if world markets are dancing to the economic beat out of China, with reports showing a slowing economy met with gap downs the following day in the US markets, while with positive reports such as the one out of China yesterday on consumer sentiment, the market gaps higher. Technically, however, the market was in a position to bounce after six straight days of downside movement. While the downtrend in US markets seems intact, expect heightened levels of volatility.
Fed Chairwoman Janet Yellen is slated to speak at the St. Louis Fed conference today at 3 pm EST, which could have an impact on markets.
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2020 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.