October is starting off as it often has, with weakness and losses. Today markets pulled back further and tested the 2150 level on the S&P and broke through it intraday. By late in the day buyers had stepped in and the index managed to recover the 2150 level. There were a number of issues that caused the selling aside from the tight trading range the market cannot break out of. These include the rumor of the ECB tapering earlier than March on their Quantitative Easing Bond buying program. It also included comments on a hard Brexit and earlier than most thought possible. A rising US dollar and declining gold and bonds as many investors and analysts felt that the ECB rumor pointed to a rise in interest rates earlier than December.
S&P Index Close
The S&P index closed down 10.71 points to 2,150.49.
Dow Jones Index Close
The Dow Jones closed down 85.40 points to 18,168.45.
NASDAQ Index Close
The NASDAQ closed down 11.22 points to 5,289.66.
Stock Market Outlook for Tomorrow – Oct 5 2016
This evening I spent time watching the Vice-Presidential debate and laying out some trade ideas for Wednesday so there is no technical portion to the Stock Market Outlook for Wednesday.
The outlook for Wednesday is for a possible bounce, but still weakness and another move lower. If the market closes higher on Wednesday, Thursday should see selling resume as the market positions itself for earnings next week.
Stay FullyInformed With Email Updates
Market Direction Internal Links
Profiting From Understanding Market Direction (Articles Index)
Understanding Short-Term Signals
Market Direction Portfolio Trades (Members)
Market Direction External Links
IWM ETF Russell 2000 Fund Info
Market Direction SPY ETF 500 Fund Info