The SPY is testing the 50 day today and may possibly close below it for the first time since late July. We have issues galore now starting with oil crossing over $100 today. Rates hitting highs after PPI today and rate hike odds increasing are not helping things. It’s a shame that politics are getting in the way of things because earnings are better than they’ve ever been. Bulls would like to see a close above this 50 day but we’ve been flat for so long that the 100 day is just a little over 1% lower so we have decent support in this range. Let’s see what CPI holds for us. We also have a big earnings this afternoon from Oracle that will trickle down to many other tech names. Again I still am in the camp Trump finds a way to sink oil and save markets before midterms but its hard to gamble on that thesis because the charts are telling you to be cautious. Just be careful is all
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Here are today’s large cap momentum scans from the database, you’ll notice no tech names here today and lots of energy and defensives. That lines up with the market possibly breaking down here.
My Open Book
