Wednesday, February 27, 2019

This Morning's Log Entry

Domestic politics, geopolitics and the Fed are providing some push/pull for the market this week; while the S&P bumps up against what has been very strong technical resistance during the current correction:


Any profit taking reversal of the recent surge should find support at the 200-day moving average, then at 2700 if breached.


Despite the stiff resistance, as well as the potentially negative headline influence, the pause this week so far feels like your garden variety consolidation of recent gains; the volume character suggests the same (remaining more constructive vs previous attempts at this level):


The latest economic sentiment data (globally) -- while certainly not stellar -- hint that the latest batch of concerning hard data may begin to improve over the coming months. That, along with optimism over a U.S./China trade deal, clearly – at this juncture – has traders nibbling at the dips. That said, the current level is the most precarious between here and the September ‘18 high. We could easily see volatility pick up markedly over the next few days/weeks…

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