SHORT TERM: stocks close lower after a positive opening
Stocks opened higher this morning, but selling in the tech sector took the market lower after a few minutes into the session. Stocks continued to retreat until about 1:00, when all the indices were oversold short term. Now the cyclicals and the techs are in alignment. At 1:00 the market staged a small rally, and closed above their worse levels of the day. At the close: SPX/DOW were 0.10% lower, and the NDX/NAZ were 0.45% lower. Bonds closed 1/2 point higher, Crude rose 35 cents, Gold was $2.50 higher, and the Euro moved a bit higher as well. There appeared to be pockets of strength in the tech sector, even though the major indices were lower. A very busy economic calendar ahead this week. Tomorrow morning Jan Durable goods orders/Existing home sales; wednesday morning, Q4 GDP/Chicago PMI/New home sales; and thursday Core PCE index/Feb ISM. Also, the FED’s active this week too. FED chair Bernanke speaks before the House tomorrow at 10:00, to be followed by Vice chair Kohn; and Bernanke gives a speech friday night at Stanford. Now that all the major indices are realigned it is time for this market to make some upside progress. We had a small rally in the last three hours, and it should continue tomorrow, as the market usually reacts favorably to Bernanke’s speeches.
MEDIUM TERM: bullish
LONG TERM: bullish.