Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Yesterday we had a market that could have gone either way as a narrowing range on the S&P 500 with weakness in cyclical stocks and the potential for a head and shoulders formation, was offset by a divergence in the Russell 2000. The chart in the S&P 500 looked like this.
This morning futures were up on “news we already knew” out of the ECB but a better than expected ADP employment report and ISM data helped the bull case and that upper purple line noted yesterday connecting the highs of 8/21 and 8/31 was broken to the upside. It’s been all rainbows and unicorns since as the those same highs of 8/31 were broken. The market has been marking time and going sideways the past few hrs but it’s definitely positive action and a win for the bulls from a precarious position yesterday.
Of course we have employment data tomorrow but any action that holds above those 8/21 highs would be very favorable for the market.
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