The very oversold NASDAQ led stocks up Tuesday but the S&P 500 lagged in a relative sense; this makes sense as the NASDAQ has taken much more damage in the past few weeks. In fact the NASDAQ had its worst 3 day performance since 2011 coming into the day. The S&P 500 gained 0.38% and NASDAQ 0.81%.
Another session of mild digestion after Tuesday's large rally; stocks started off strong but gave up some steam late in the day. We ended with mixed indexes; the S&P 500 gained 0.17% while the NASDAQ fell 0.13%. Tomorrow pre-market we will get labor data from the U.S. government; it has been two bad months in a row in terms of non farm payroll gains so people will be watching to see if there is some reversion to mean and some revisions upwards to the last 2 months of data due to weather. Since the bar is so low tomorrow any positive number might be enough to give the market a jolt to push it up to the upward extreme level on the NASDAQ chart below.
Indexes had nice gains most of the day on a good housing number but sold off a bit late in the day. This is the third day the S&P 500 has failed to break over year highs but the bullish take on this is we just came off a ferocious two week rally and are now consolidating before making a new push higher. The S&P 500 finished flat while the NASDAQ gained 0.10%.
Tick tock. Another day the market is open and goes up. Essentially the same story as the entire month of October - there have only been 2 down days since this rally began in the S&P 500. The S&P 500 gained 0.56% and the NASDAQ 0.31%. Nothing really new to add to the overall market analysis here; we are in a major uptrend of parabolic nature, and you are seeing rotation under the surface as different groups take turns being leaders each day. No one is worried much about tomorrow's Federal Reserve decision as there is zero expectation of nothing but full steam ahead from the Fed. IBM was a highlight today as the massive DJIA component announced a huge $15B addition to its buyback program. The only major economic report on the day were monthly retail sales - they were above expectations but mostly due to iPhone sales...
Tuesday was a rotten session for the bull case. Up through today there was at least a small subset of stocks that in general were relatively immune to the selling but today those were the hardest hit stocks. The S&P 500 fell 1.23% but the NASDAQ was torched for 2.0%. Recall we have been saying the NASDAQ has been outperforming by a large margin but usually these 2 indexes move much more in line. Well today the NASDAQ began to "catch up" to the S&P 500; of course beforehand we don't know which index will catch up to which; i.e. the S&P 500 could have just as easily outperformed the NASDAQ to the upside ... but that would required our friends in Washington D.C. to be compliant. Economic news flow remained light; it is all about D.C. for now.