I’m guessing that you felt that. I felt it too. Today’s final half hour got a bit rough. maybe more than a bit rough, as the fabled SPX 2367 level faced it’s fourth and most severe test of the session. The spot was actually pierced prior to regaining it’s footing in a spate of algorithmic short covering that lasted into the closing bell. The macro today was fugly. (If you never heard of fugly, DM me.) A 0.6% month over month increase in exports for January that included a 1.3% increase in auto exports couldn’t even begin to disguise a robust 2.3% increase in imports for the month. Down goes Frazier (Always rooted for Frazier against that draft dodger, btw), and down goes any and all Q1 GDP tracking models. The Atlanta Fed’s model is now zipping along at a crisp 1.3%. Oh, baby … Rock on.
Should we even go into January Consumer Credit? Not if we want to keep pretending that the US economy is scraping along at “full employment” LOL. Gonna need your entrenching tool to find the revolving credit number.
So, now the S&P 500 is resting on support, the very same spot that provided resistance throughout the last week of February. That’s right, last Wednesday’s screaming run to victory is gone. Poof. Get over it. Still haven’t been obliterated. I’d rather be where we are, then where we’ve been. My P/L agrees, though it is getting a little ornery. You really couldn’t blame a soul for taking their money off of the table, and playing with the balance, now could you. I mean, I only need clean water, a source of heat, and baseball. Most of the rest of you also need some dough. So, let’s take a look at the victims.
We have to begin with Health Care. Telecom and Energy took the more severe sector-wide beatings, but Health care is dominating the headlines, and it’s more interesting to boot. Did you see the SPDR Bio-tech ETF(XBI). Whooo doggie … -1.7% on the day. Pharma also danced the nasty after the president suggested more competition was need across the space in oder to lower prices (on Twitter, which also got hit in the teeth). Treasuries, Gold, and Oil all move toward the lower end of their month-long ranges.
Wasn’t anything in the green, Sarge? Info-Tech snuck across the goal line in decent shape, led by the semis, but kids… that’s going to be about it.
Trading Levels: We all know that our SPX levels were very close to spot on at both the top and the bottom of the chart. May revise the 2367 level a point or two lower. I’ll decide that when I study the charts tonight. Our RUT levels were very close to perfect. 1384 at the top, 1378 for support. Once the 1378 level cracked late in the day, the index found help at 1374. I had given you 1371. My bad.