Thursday’s Morning Briefing

The Major U.S. benchmark indexes traded lower than Wednesday’s. The Dow close at 18096: down -106 points (0.58%). The Nasdaq Composite ended the session at 4967: down -12 points (0.26%).  The Broad Benchmark S&P 500 finished the session at 2098: down -9 point (0.45%).

S&P futures traded below the Tuesday’s low, breaching support at 2095 and auctioning down to 2085: 33 points (1.5%) below its all-time record high. Statistically, a 33 to 36 point decline in the S&P equals a maximum price excursion.

However, in the context of Wednesday’s market development, the pull-back (sell-off) to 2085 was 22 points below the prior day’s high at 2107. Monday’s sell-off was

04-MAR-2015 | Wednesday’s Morning Briefing

The major U.S. benchmark indexes closed lower on Tuesday. The Nasdaq Composite ended the session at 4979: down -28 points (0.56%).  The Dow closed at 18203: down -85 points. The Broad Benchmark S&P 500 finished the session at 2007: down -9 point (0.45%).

While the all the major market ended low there was a notable difference in Tuesday’s market activity at today’s low versus the narrow range development observed at the recent high.

In the case of the S&P 500, the selling pressure was present at the open. S&P futures had sold down fromMonday’s high at 2115 during the overnight session.

The minor intraday support level at 2107, noted inMonday’s commentary was breached. S&P futures traded down to what had been the prior high at or near 2100-2098. The prior high was modestly breached with the S&P trading down to 2096, before

Tuesday’s Morning Briefing

S&P futures have sold-off modestly in the overnight session, pulling back from yesterday’s high at 2115 and traded down to 2107, as of this post.

On Monday, the S&P sold below Friday’s close and re-tested support at 2100. The market spent very little time at the low. S&P futures auctioned up to 2112, pulled back to 2107, before trading above what has been minor resistance at 2112 and auctioning up to 2115.

The major U.S. Indexes closed above the prior day’s close. The NASDAQ Composite rallied up to 5008: +44 points (0.90%). The DOW closed at 18288: +155 points (0.86%) and the broad benchmark S&P 500 finished the session at 2117: +12 points (061%).

The initial pull back to the prior high at 2100 was therefore meet with a buy response. On the NYSE advancing issues (4028) outnumbered

S&P futures traded modestly lower in the overnight session, pulling back to re-test support at or near the prior high at 2100. On Friday the Major U.S. benchmark indexes closed lower.

Since auctioning up to the current all-time record high at 2118-2120, S&P futures pulled back the distance of an average daily for the first time , trading down to 2101 late in the day, before auctioning up modestly to 2106 at Friday’s close.

On 02-18-15 S&P futures rallied up to 2100, before selling off from the high and pulling back to 2082.  In the context of a break-out above 2100 and the subsequence rally up to the new all-time high at 2118, the re-test of the prior high (2100-2098) is an important event in determining the potential for continue of the underlying market sentiment.

We noted in Sunday’s market commentary that we expect to see the S&P re-test Friday low 2101, the prior high at 2100-2098 before attempting to