The S&P 500 and other indices opened at their highs and sold off from there, the S&P reaching its low of 153.00 by mid-morning. Volume was up from last week’s average, typical on days with major selling, but the bulls came back to take advantage of the favorable prices.
The S&P (ESU14.CME) took back nearly half of its losses, closing at 1960.50 after a surge of buying in the last 15 minutes of trading. I spoke to my friend, “Market Wizard” Marty Schwartz, as the spoos were bottoming around 53-54. The PitBull told me he was hearing that a lot of people were taking profits on market-leading stocks, such as airlines, amid concerns about how much higher the markets could go. This was causing the selloff and making people nervous about whether it was the start of a bigger correction.
I told him I thought 1953 was it for today and it would head back up. We went back and forth as we always do, and in the end I was right, at least for today. But I’m going to take a stand and say that even though I still think we’ll see PitBull’s Thursday/Friday low before the expiration, that’ll be followed by a nice rally and the week will be up overall.
So there you have it, on video. The week may be choppy but it’ll be up when the dust clears on Friday. We’ll see you tomorrow morning. If you don’t already get the Opening Print newsletter, sign up for free at MrTopStep.com.
HIGH: 1967.30 Open
LOW: 1953.00 Mid-Morning
LAST: 1958.50 DOWN 12.50 Handles
TOTAL VOLUME: 1.7mil minis; 3.1k bigs
MOC: SELL $170mil
MBA Purchase Applications
EIA Petroleum Status Report
10yr Note Auction
Pit Bull selling the market leaders like the airlines
I am not giving in…
Still think higher, but still looking for Pit Bull Thursday/Friday low.