The opinions expressed below are my own and do not necessarily represent those of Visdom Investment Group, LLC.
Take a breather.
After a bit of a run, the S&P 500 pulled back a touch today. Weakness started with the open of European trading and the yield curve was higher again this morning. The index opened down about 30 points and fell to down 55 points around 11:30 AM. Once Europe closed, US bulls went to work repairing the damage. The yield curve cooperated as well, with yields pulling back. Crude did its part too, starting the day up small but dropping during trading.
A well-received US 10-year bond auction was helpful for Treasuries but there wasn’t much else in the way of material news today. As a consequence, investors didn’t push prices around much. Maybe the drop in stocks is part of a digestion of the recent gains. It seems reasonable that the desire to lift offers at new all-time highs would wane without help from lower yields or some other meaningful event.
The S&P gave back some of yesterday’s gains in an environment that isn’t very different than yesterday. It’s not informative to us in adjusting the big picture but it certainly makes sense.
See you tomorrow.
-Mike
Visdom Market Commentary
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