The Fuse
Futures are down sharply this morning as news from overseas percolates into a full blown banking crisis. Yesterday appeared to be a strong reversal from Wednesday’s selling, but there was an about face and stocks fell sharply, and may followthrough into the weekend.
3900 on the SPX 500 is where we might see good support, below there is 3850 and 3800. Russell 2K was horrible this week, the IWM is now below 170.
More banking issues and investors are flocking to gold, the metal now over 2K an ounce. More fallout from the Fed meeting as interest rates are steadily declining.
Strong earnings from DRI and ACN (but with job cuts). It’ll be a light schedule next week.
The Fed decision was clearly the big event, and markets did not like the move.
Breadth was moderate yesterday but fell hard from higher levels, if Friday turns out poorly there could be a new sell signal from breadth.
Strong turnover again hit as the sellers pounded the market late in the day.
Key level to follow, 4k on the upside and 3900 on the downside.
The Internals
What’s it mean?
A tale of two sessions. Early on, markets were rebounding from Wednesday’s reversal, note the strength in the VOLD, ADD and ADSPD early on. But buyers finished up and the sellers took over, notice the rise up in volatility. We could see this continue a bit longer into the end of the quarter.
The Dynamite
Economic Data:
- Friday:Durable Goods, Global Flash PMI
Earnings this week:
- Friday: XPRS
Fed Watch: The Fed raised rates one more time, delivering another blow toward inflation. We’ll see if that continues on, but markets sure did not like the move. Bank of England raised rates Thursday morning by .25%.
Stocks/issues to Watch
Gold – the metal is strong and approaching 2k an ounce.
Yields – Rates are creeping up, the 10 year is making a move towards 3.5%.