Dow +80.34 at 33482.63, Nasdaq -129.47 at 11996.86, S&P -10.22 at 4091.65
The stock market had a weak showing today. Money flowed into blue-chip names and countercyclical sectors while more economically-sensitive sectors logged decent losses following another batch of weak economic data this morning.
Briefly, the ADP Employment Change for March was weaker than expected (actual 145,000; Briefing.com consensus 205,000), the February trade deficit widened more than expected (actual $70.5 billion; Briefing.com consensus -$69.0 billion) with monthly declines in exports and imports, and the March ISM Non-Manufacturing Index was weaker than expected (actual 51.2%; consensus 54.5%). Still over 50.0% though. Under 50% implies retraction.
I’m watching Nazzy closely. I’ve said it’s ahead of itself and needs to consolidate. Doesn’t mean a massive drawdown, but bears watching. It held key short-term 8-day moving average support today.
Energy chilled today. I said last night not to chase first-day pops because most of it is knee-jerk short covering and energy has a high short position.
ETHE is now over the 200-day moving average. It triggered yesterday. Let’s see what happens now.
Financials continue to act horribly. The sector is an important part of that market on a macro and technical basis so keep watching the action in XLF, KRE, and BKX.