You probably saw the title of this article and assumed I was talking about the bull market, and that may be the case too, but it’s actually in reference to my weekly market analysis provided through Sigma Point Capital. Today will be the last article that goes out, at least for a while. I’m sure this comes as a big surprise, and you probably have many questions, so please allow me to explain.
Article Category: Sectors
It’s been a busy week so let’s jump right in. We’ll begin today with a brief look at where markets stand, get caught up to speed on the earnings front, and then examine recent trends in the latest economic data.
The first thing I want to mention today is that the S&P has finally cleared its overhead resistance at 2815. As you can see below, that price level turned the index back on five separate occasions. The fact that prices are holding above this mark is a good sign, as it suggests the selling pressure at this level has subsided.
When the market collapses as it did during December, it’s usually a function of ETF and futures driven selling. Rather than going through the process of selling individual stocks, larger investors use these baskets of securities to effectively sell everything at once. This is especially true when we’re talking about short-term, algorithmic style trading.