Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Despite a plethora of disappointing news the market is hanging in there. As always it is not the news but the reaction to the news. While the S&P 500 did sell off it fell right to that 1393 level mentioned as a key support and bounced – the low of the morning was 1393.92. The close is of course important but thus far it’s decent enough action. 1404 – a level that we keep coming to like a moth to a flame is overhead.
Interestingly enough consumer discretionary and housing stocks are flying today – almost as if the ‘squid’ has Friday’s data in their hands already and are front running some good labor data. 😉 Housing is repeating the run from this January when it was a standout performer – the sector has rested for about 8 weeks and when the market bounced a week and a half ago, these have been leading the charge. Please note the ITB ETF is not just home builders but the ‘rehab/remodel’ stocks as well – faucets, cabinets, the 2 big retailers in the space, etc.
