As we stand now there is far more right than wrong with the technical picture of the market. There are fewer stocks now in basing or advancing patterns than earlier in the year, but the weight of the evidence still gives the bulls the benefit of the doubt. I pointed you toward the 50-day moving averages the past few weeks. Those levels have been touched and successfully tested more than once over the past several weeks. The action at these support levels leads me to believe that the bulls are still in command.
Experienced traders and investors respect and understand the concept of “Don’t fight the Fed”. The basic rationale behind the expression is that when the Fed is printing money, the odds are tilted in the bulls’ favor. Conversely, when the Fed is tightening policy, bearish odds begin to pick up.
Until the past few months I've not routinely reported on monthly manufacturing data, regional or otherwise.
Commercial traders of gold futures are showing one of the most bullish conditions in years. They are usually presumed to be the "smart money", and so when commercial traders move to a lopsided net position as a group, it usually means that prices are going to be moving in their chosen direction.
The S&P 500 closed off by 0.59% and the Dow was lower by 0.70%. Yesterday the major averages bounced off support at their respective 50-day moving averages. Today they failed to breach their 20-day moving averages to the upside. The markets tried to rally in the morning but found sellers ahead of the weekend.