“No regulatory penalties, no criminal indictments for fraud, no clawbacks, no prohibitions of bonuses at least during early phase of financial market recovery, all of this sticks in my mind as unjustifiable— and imprudent, as it taught a lasting lesson that bankers had immunity.”
Dr. Harald Malmgren
“At the recent market peak, the most reliable measures of U.S. equity market valuation (those best correlated w/actual subsequent long-term returns) were about 200% above (3 times) historical norms. No market cycle, not even 2002, 2009, has ended at valuations even half that level.”
John Hussman
Yesterday I said:
“The 2770 level on the SP 500 Futures chart looks like an important support level. Below that the bulls will need to start taking Xanax if they break 2740 and stick a close below that.”
The continuous contract SP 500 futures, which is what I watch and chart, failed to hold that support at 2770, and closed at 2747, after an intraday low at 2712, which is the diagonal support line from the previous correction lows.
As for big cap tech, after a plunge to test 6905 they managed to come off the lows and actually finish in the green around 7040
So at least for today the market stabilization crew can claim ‘mission accomplished.’
The Dollar took a bit of a dive today, as the safe haven buying flocked to the bonds, sending yields lower, and to gold and silver which had the kinds of bounces we have not seen in some time.
Gold finished near the upper band of its recent short term trading range.
Let’s see how the wiseguys manage the markets yesterday, going into the weekend.
As previously noted, a decent attempt to get the stocks back higher, after some possible doodling around down here near support is certainly possible.
I have not bothered to calculate the percent declines and Fibonacci retracement levels yet, as the current correction is still rather ‘young.’
We are on the brink of earnings season once again, and those firms coming out and warning are being beaten rather soundly.
If stock buybacks are the main thing that the stock bulls can look forward to, then they are just delaying the inevitable.
Have a pleasant evening.
