MV Weather Report: Goldman Sachs Lightning Bolt Sparks Rally
Rain or shine, we reivew the day's biggest stock stories.
The week started off with a bang for bulls as stocks rallied Monday. The rally was ignited by the ISM Services index and an upgrade of the banking sector by Goldman Sachs.
For the month of September, the ISM Index was 50.9 compared to analyst estimates of 50.0. Last period during the month of August the index was 48.4. Today's ISM beat comes as a relief to bulls as last week saw many indicators come in weaker than expected.
The positive data for the ISM helped lift the S&P 500 1.48% to 1040, closing just off the high of the day at 1042.
As mentioned above, Banks were the leaders of the day thanks to positive comments by Goldman Sachs: Bank of America (BAC), JPMorgan (JPM) and Wells Fargo (WFC) all traded higher. However, the strength was pretty much across the board: Cliff's Natural (CLF), Agnico-Eagle Mines (AEM), and Chevron (CVX) to name a few.
Today's rally was textbook. The S&P 500 hit 50 DMA Friday, and the normal expectation after the initial touch is a bounce. However, today's close was right at 1040 S&P, on today's Buzz and Banter, Professor Jeff Cooper explained why this is an important area.
"The S&P has reached an inflection point----the Weekly Swing Pivot where the weekly chart turned down last week on trade below 1041.25
"In addition 1045 is 90 degrees down from the 1077 high (which is opposite 666 on the Square of 9 Chart).
"What is the significance of 1040 S&P?
"The rally off the March 03 low was 374 pts.
"374 points added to the 666 low this year gives 1040.
"The S&P only closed meaningfully above that level for one week before jack-knifing back below it.
"1040 is also the close of the month of September 2001 post 9/11.
"This is a little eerie as 11/1/09 is a symbolic vibration of 9/11/01.
"8 years after the first attack on the WTC in 1993 was 9/11.
"2009 is 8 years forward.
"In addition, the recent 1077 high is 1260 degrees in price up from 666. 1260 degrees is the Biblical time, times, and half-time, ie 360 plus 720 plus 180."
Have a great night!
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