The S&P500 sliced through its 200-day moving average like a “hot knife through budda'” today. It’s the first close below the 200-day in almost two years. Significant.
The next stop is the February 9th intraday low at 2532.69, the Maginot Line for this bull market.
The only positives to take away from today’s action is the S&P500 held its February 9th intraday and closed slightly above, 0.89 points, the February 8th closing low.
Note in the table below the current bull is putting up a bigger fight than the 1987 and 1962 markets before succumbing to a bear market. The S&P500 is still hovering above its initial low 34 trading days later, which is more than the 6 days in 1987 and 20 days in 1962.
Today was Larry Kudlow’s first official day in his new job and we bet he is not happy with the price action, the president’s tweets on Amazon, and the negative headlines on trade, which are tanking the market
Maybe the reason why we got a positive headline on NAFTA after the market close. If President Trump continues to link a deal on NAFTA to Mexico participation in building the “big beautiful wall”, fugget about it! No deal. Mexico’s presidential election is fast approaching.
We will be out for a spring break and will try to check in. Always expect something big when we are off the desk.