As I look at the market landscape today it seems that
selling pressure is building in, even though we did not have a down day across
the indexes. The price action is trading
in a tight range so far this week and has not tipped its hand to let us know as
market participants which way it will go.
I believe that most traders think that we have some more pullback to
go. I would agree a healthy pullback
would relieve the pressure on the over heated market so that buyers will eventually “buy the
bounce” We will see.
Most of the action today was on the oil markets (see the Chart of the Day) where it was shown that Saudi Arabia is going to be
increasing supply which should decrease oil prices somewhat, and that had a lot
of oil stocks off today.
Home sales improved and saw August surge 7.8% which lifted
the home builders sector. It may be a
good idea to look and see what stocks are surging in that sector or that are at
buy points, because if this continues it means that the overall economy is on
the mend.
Tomorrow, a couple of things that could move the market are the
Philly Fed report and initial claims).
These releases according to analysts look to come in a little negative which
might have the market off tomorrow.
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