thependulumswings

Friends

Stocks continue to lose a little bit of luster as we move into March. Today’s ADP private payroll number was about as expected and estimates are for Friday’s government non-farm payroll number to show about 180,000 new jobs were created in February. But, stocks seem to be experiencing a modest buyers strike at the moment. Volatility is still somewhat muted, but the direction has had a downward slope for several days now.

By the close, the Dow Jones Industrial Average was down 133 points to finish the day at 25,673. The S&P 500 was down 18 points to close at 2,771. Gold was up $2 to trade at $1,287 per ounce, while oil was down $.34 to trade at $56.22 per barrel WTI.

As we have mentioned, it’s not a bad thing that we would take a pause after such a robust rally off the Christmas Eve low, but it is a little disconcerting that we can’t get decisively above the 2800 resistance mark on the S&P. By the way, today marks the 10 year anniversary of the intraday market low of 666 on the S&P 500. The market didn’t bottom on a closing basis until the 9th of March 2009, but the March 6th intraday low was such an ominous number, market participants will never quiet forget it. It’s really amazing that we’re whining about 2800 10 years later. I can tell you with serious conviction, that on March 6, 2009 the S&P 500 reaching 2800 seemed like a fairy tale. Memories.

Have a nice evening everyone.

Jim