Thursday, October 06, 2016
A one day reversal to the upside for the S&P 500 as we opened lower and closed higher. The Dow ended the day down 12 points however. The advance/declines were slightly negative and the volume was light. The summation index is still heading lower. Early weakness today was bought and then we moved sideways for the rest of the session. Simply waiting for the market reaction to tomorrows employment report. There is nothing to read into todays market action. Tomorrow will be the key. GE was off 1/4, volume was nothing special. Gold dropped another dozen as the US dollar continues to rise. Foreshadowing a decent jobs report tomorrow? Who knows? The XAU shed another 2 1/2, while GDX lost 3/4. Volume was good. Quite a negative week so far for gold and the gold shares. Mentally I'm feeling OK. The price action today for the major indices implies higher prices tomorrow. But it isn't 100% accurate, as nothing is in this game. I do think that tomorrow will set the tone for which direction we're going to go here. You can make the case either way, which is why it is probably best to simply wait it out and see where we go. As always, the markets reaction to the numbers and not the numbers themselves will tell the story. We've basically waited all week for this and hopefully it doesn't disappoint. Asia was higher and Europe slightly lower last night. All eyes on the jobs report and we'll close out the week tomorrow.