Major averages traded essentially flat on lower volume Friday showing a lack of institutional interest while the market continues to digest its gains. The NASDAQ Composite made another 14-year closing high while the S&P 500 eked out a new closing high. Crude oil and other commodities continue their downtrends as the global economy continues to lag as China had yet another report this week showing a slowdown in their growth. Nevertheless, major averages continue to trend into new all-time or multi-year high ground as the uptrend has so far shown strength and resilience. But with each passing day, odds favor a pullback of some measure. Whether it is a typical pullback contained to within 3-4% accompanied with sideways action such as seen in July and early August of this year or something more serious remains to be seen. Leadership remains scant.
Futures are down this morning on overnight news out of Japan that the country has slipped back into a recession despite "Abenomics," ostensibly the massive printing of yen, which has failed to produce any meaningful economic growth. Overnight the Nikkei had its biggest drop since August, down -2.96%.
Bitauto (BITA) had a pocket pivot on Friday after a strong earnings report. Earnings continue to surge ahead, group rank 34.
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