Courtesy of John Nyaradi.
Equity markets will likely correct today, snapping a five day losing streak for the S&P 500
Equity markets will likely correct themselves today due to oversold conditions, despite the potential for positive economic reports and movement within Congress.
All major indexes declined yesterday as predicted however, with the S&P 500 (NYSEARCA:SPY) losing .27%, the Dow Jones Industrial Average (NYSEARCA:DIA) losing .40%, and the NASDAQ Composite (NASDAQ:QQQ) losing .19%, despite relatively positive durable goods orders, new home sales, and household debt reports.
Everyone appears focused on the continued Congressional gridlock, which today focused on Senator Ted Cruz’ 21 hour ”fake” fillabuster of the debt ceiling bill. Each Senator did vote to pass the bill to debate the debt ceiling bill however (which is odd), so now the Senate has the option to remove the anti-Obamacare clause and push the revised bill back to the House. This battle isn’t over yet, and it will likely come to a head this coming Monday. I would suggest that more Congressional infighting would spook markets further today, but now that the Democratically controlled Senate has the ball, tensions will likely ease for a day or two as the new bill is flushed out.
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