MV Weather Report: S&P Hits High on Easy Breezy Day
Rain or shine, we review the day's biggest stock stories.
For the day, the S&P 500 closed higher by 0.30% to 1005 just off the intra-day and new 6-month high of 1007. This is typical action in the market since the July romp started. The S&P makes a new high, pauses, and then explodes to another new high.
To contradict my opening paragraph, I would say today may be more meaningful then "nothing." The new high in the S&P now stands at 1007, quite an important number. Today on the Buzz and Banter, Professor Jeff Cooper told readers why.
"The last leg down into the March low was 18 trading days.
"Currently the leg up from the early July time and price square out is in day 17th.
"From the important 'internal', capitulation low on October 10th, 2008 to the March low 2009 was 5 months. From the March low to the end of this week is 5 months.
"If 1007 S&P (which is on the master square as it corresponds to the same vector on the square of 9 chart that bisects 1576 and 768, the all time high and the 2002 low respectively) is the theoretical turning point (which also represents a 3/8 Retrace of the bear market) then the midpoint of the range from 666 to 1007 is 836… which is basically the level of the October 10, 2008 low.
"Today, the S&P has finally tagged 1007, which was also the high on November 4th, 2008 preceding the 3 week smash down.
"The market often plays out in threes: note that the decline into the March low was also a 3 week smash."
Interesting we are now on week 4 of the rally and we are going into an important jobs number Friday. But, before we get to Friday we have to tackle Wednesday and Thursday. Tomorrow traders will be watching for ADP Employment Change, Factory Orders, and ISM Services while also keeping an eye on some big name companies reporting earnings.
Before: Agrium (AGU), Devon Energy (DVN), Foster Wheeler (FWLT), Procter and Gamble (PG), Transocean (RIG).
After: Cisco Systems (CSCO)
That's all for tonight, have a great one!
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