The video in this report is only accessible to members
The video in this report is only accessible to members

Thursday’s Equity snapback rally proved short-lived, as some European bank credit default swap widening spooked the bond market, and stock indices followed suit.   The rumor was that counter-party hedging was responsible, but the bond market was volatile yet again.

While stock indices managed to recover by the close, breadth was lower by nearly 2/1 negative as Equal-weighted Financials, Energy and Utilities all fell more than 1%. 

Near-term, it’s still not a stretch to say SPX and DJIA are up near important short-term resistance and could stall out and/or reverse during this important seasonal period.  Following the recent 200-point SPX move off 3/13 lows, short-term trends remain bullish but are wavering a bit after having reached resistance within downtrends from early February.

Neither SPX nor DJIA has exceeded areas of importance, and similar to Wednesday, prices fell sharply from intra-day highs, albeit not as extreme as in yesterday’s trading.

Technology, to its credit, continues to lead the charge, largely uninterrupted.  Thursday’s +1.5% advance swamped all other sectors, and camouflaged the decline yet again given strength in names like $MU, $INTU, $LRCX, and $ACN meaningfully outperforme...

Unlock this article with a FREE 30-Day Trial!

An FSI Pro, or FSI Macro subscription is required in order to access this content.

*Free trial available only on a monthly plan

Disclosures (show)

Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 2/2

🎁 Unlock 1 extra article by joining our Community!

You’ve reached your limit of 2 free monthly articles. Please enter your email to unlock 1 more articles.

Already have an account? Sign In

Don't Miss Out
First Month Free