JNJ getting battered about today. Pharma in general has been quickly closing in on key price and oversold areas.
looks like indices here and abroad getting a little oversold down here... the battleground appears to be the daily 200ma, it'll be interesting to see how we close today
Seems like stocks rebounding just a little bit along with bonds yields. The bonds market could be one of the major factors to move stocks until we get some major economic data later on. The jobs report is next Friday, right? I guess the market wants to see a solid report to confirm that the economy is still doing ok
hmm, it's looking like a nice stick save of that daily 200ma on the spx ... i was wondering if we would get a close below that today, but as of now a pretty nice recovery.
yep, nfp's next fri it'll be interesting to see if the markets have this all wrong again (as far as recession fears go), as they did the last correction tbh, i don't usually put much weight on any one econ. report, but i'm thinking tomm's job claims # could be interesting more than usual to see if we get any spike there ... have yet to see anything like that though, as we're still very close to cycle lows consumer confidence still pegged at 20 year highs as well. oh and i think we also get revisions to gdp later this week no? as bad as this month of may has looked, the spx is still only off about -5% from ATHs ... pretty healthy and normal pullback so far
I think the manufacturing PMI last week really spooked the market a little bit But yeah I agree I guess we would need more data to see if the economy is getting so much weaker all of the sudden. The consumer and employment data are still strong
Morning Lineup - Nearing Extremes Thu, May 30, 2019 Futures are still indicating a positive open, but the degree of gains has been shrinking all morning ahead of a heavy dose of economic data. Trade tensions are once again in the headlines, and today's economic data is unlikely to move things much in either direction as there were no major surprises. The revision to GDP was slightly stronger than expected, Core PCE and the GDP Price Index were weaker than expected, Jobless Claims were pretty much right in line, and Wholesale Inventories rose more than expected. Even with the S&P 500 closing off its intraday lows yesterday, the market is approaching some levels that can be considered extreme in the short-run. For starters, the S&P 500 finished the day yesterday 1.998 standard deviations below its 50-DMA. For the sake of reference, we consider anything more than one standard deviation below the 50-DMA oversold, while two standard deviations is considered an extreme. We did see more extreme oversold levels last year in Q4 but that was a hardly the run of the mill decline. In terms of the S&P 500's individual components, the number of oversold stocks is starting to pile up. As of yesterday's close, 10.4% of the stocks in the index were overbought (more than one standard deviation above their 50-DMA) while just under half (49.2%) were oversold. At a net reading of -38.8%, there haven't been this many oversold stocks in the S&P 500 since January 3rd when over 70% of the stocks in the S&P 500 were oversold.
S&P 500 Trading Range Chart and Sector Internals Thu, May 30, 2019 Below is an updated look at the S&P 500's trading range chart over the last year. After just barely making a new 52-week high in April, it has been all downhill since, with the index currently trading in extreme oversold territory at two standard deviations below its 50-day moving average. Yesterday's declines caused more technical damage when the index broke below its lows from a few weeks ago. Right now the bears have control and the onus is on the bulls to break the short-term downtrend that's in place. The defensive areas of the market like Consumer Staples and Utilities had been holding up well up until this week, but even these non-cyclicals have started to experience significant selling. The declines for defensives have left every single S&P 500 sector with less than 50% of its stocks above their 50-day moving averages. As shown below, just 28% of S&P 500 stocks and 3% of those in the Energy sector are above their 50-DMAs. The largest sector of the market -- Technology -- currently has a very weak reading of just 25% as well.
Trend Analyzer - 5/30/19 - Extremely Oversold Thu, May 30, 2019 Further declines this week have continued to push the major index ETFs deeper into oversold territory. Currently half of the major index ETFs are sitting over 2 standard deviations below the 50-DMA; what we consider to be extremely oversold. While the rest of these ETFs are not yet at extreme levels, they are on the cusp of joining their peers. This push deep into oversold territory has been pretty rapid as evident by the long tails to the right in the Trading Range section of our Trend Analyzer. This time last week, these ETFs were just barely oversold or neutral. Some, like the S&P 500 (SPY) and Nasdaq (QQQ), were actually right near the 50-DMA. As this group has fallen into oversold territory, small and mid caps have led the way lower. The Core S&P 500 Small-Cap (IJR) is currently down the most with a 3.8% decline while the others are not far behind all down over 3%.
Not much time to watch the market today since some people doing home improvement things at my home As of now it seems like the market could pull off slight gains for the day
Index dropped about 0.9%. Mexico tariffs? edit: Looks like that's the reason. 5% tariffs on June 10th. Of course, should add the words "currently scheduled".
Well at least not the tariffs going up for China again, it probably would be a disaster for the market
