Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
We actually are coming into the day rather oversold despite yesterday’s weak bounce. At the open the S&P 500 shall be testing that 1538-1540 area that is this lower trend line connecting the lows of November, December and February. Note in the three previous episodes there were substantial 2 day rallies immediately after hitting this trend line. So it bears watching to see if bulls can perform again.
Some fascinating stats from the WSJ this morning:
The Russell 2000 index of small-capitalization stocks peaked last year on March 14. This year, the index topped out on March 15. The Dow transports hit a high last year on March 19. This year, they also peaked on March 19. And the German DAX topped last spring on March 16. This year, the index topped on March 15.
There are also all sort of weird things happening in the currency and Japanese bond markets overnight as the intervention was so immense it is causing a lot of havoc.
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