Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
The markets remain stuck here as they await some form of resolution to this federal budget + debt ceiling situation(s). Interestingly each of the 3 sessions this week we have seen a spike into the close as investors assume a deal is imminent each night, but thus far not so much. It appears tomorrow’s employment data will also be delayed due to the shutdown, but the ADP data yesterday was not of the nature that would indicate any change coming from the Fed anytime soon.
There still remain a group of stocks acting well in this market, but the indexes sure are interesting – we are getting 2 different stories on the S&P 500 and NASDAQ. Of course eventually they will begin to move more in concert but right now the biotech/tech heavy NASDAQ is acting fine while the S&P 500 is in more of a corrective state. Interestingly the Russell 2000 is acting like the NASDAQ while the DJIA is acting even worse than the S&P 500. So a very selective market.
The S&P 500 broke through the 50 day intraday Monday before recovering it, and that has been the floor the past 2 sessions. MACD has crossed over bearish but this can sometimes quickly reverse itself. Meanwhile the NASDAQ on Monday only fell to its 20 day moving average and aside from 1 session has bounced repeatedly off its 10 day moving average during this correction.
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