Opening equity gains were expected this morning, and with the sp'500 hitting 2056, the day looked set for a strong net gain. Yet... a turn began from around 11am... the market spiraled lower, with a rather severe downward swing of 48pts to an intra low of sp'2008. Certainly... it was not a boring day!
sp'weekly7
Summary
The weekly 'rainbow' chart is sporting the first red candle.. after two blue candles. Lower rising trend remains intact... just.
--
Increasingly, it is a mixed picture. The rising trend from the Oct' low is still intact, but the weekly MACD (green bar histogram) cycle is now negative. In theory... equity bears could justifiably aim for a hit of the 200dma in the sp'1960s.
Despite today's wild swing, the notion of a sustained (as in weeks.. not days) break <sp'2k seems unlikely.
-
Dr Copper continues to slide
A brief update on Copper, monthly
Best guess remains for continued weakness to a 'deflationary' target in the $2.30/20s, which is another 15% or so lower. If correct, mining stocks such as FCX and TCK have a considerable way yet to fall... probably on the order of 20/25%.
*update.. as at 9.53pm EST, Copper has seen a further major snap lower, -7% to $2.42... getting rather close to target.
--
Looking ahead
Wednesday will see quite a few bits and pieces...
Retail sales, import/export prices, bus' invents. There is a fed beige book due at 2pm.. no doubt, the algo-bots will be waiting to churn on that.
--
Goodnight from London
