The way the market behaves is more like your cable service faster when it declines (like an elevator); and slow on recovery (like climbing stairs), writes Gene Inger Thursday night.
Daily action generated further snap-backs Thursday in the wake of the auto tariff story Wednesday evening triggering a sell-off; and later a more notable rebound in the wake of a solid sell-off, more so in the Dow (DJI) following President Trump announcing a withdrawal from the summit.
For the market there remains plenty of room or cushion above key level supports we watch, such as the 200-Day Moving Average.
Reuters: S&P, Dow edge lower Friday afternoon on oil plunge. NASDAQ lifted by chipmakers.
However, that’s not to suggest anyone on the fence about this market will await attacks so far down before becoming defensive again. You see it every day in what is a very jittery market, frequently with single-session alternating swings.
Going into the holiday weekend, we could see indecisiveness or flat-out defensiveness again as traders sort of square-off positions for a few days.
So, if there is to be a Summit-on rally Friday it will probably fade later in the day. And we don't even yet know if that story’s valid (single source only so far).
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Oh, as a tropical storm approaches the Florida coast, we have added more back-up batteries for computers. More importantly, I am expecting activation of “gigabit internet” speeds actually sometime Friday (near 1000 MBPS down and up).
Waiting for that and it will really speed-up basically everything. (Fiber allows symmetrical speeds, whereas cable is typically fast downloading, but slow uploading.)
Incidentally, the way the market behaves is more like cable: faster when it declines (like an elevator); and slow on recovery (like climbing stairs).
So, keep that in-mind when one takes too much comfort as the S&P 500 (SPX) clearance above support levels on the charts.
