[Chart courtesy of MarketWatch.com]
- Moving the markets
There was nothing exciting about today’s session other than a brief mid-day climb above the unchanged line, after which the major indexes hit the skids with the Dow and S&P snapping a 6-day winning streak. It’s still too early to determine if today’s action was the end of the current dead-cat bounce, as some analysts named last week’s rebound.
Not helping matters or instilling confidence was Wal-Mart’s earnings-related swan dive, which was its biggest one-day decline in 30 years (-10.18%). Yesterday, when the markets were closed for Presidents Day, the futures showed the plunge of the cash market at the open—except there was no opening! Someone forgot to turn off the computers confirming again for those who still don’t know that markets are manipulated and programs will be run as long as the power switch is on.
The VIX headed back above 20, and Treasury yields rose with the 10-year adding 1 basis point to end at +2.91%, its highest level since early 2014. That took any starch out of the mid-day rally attempt. The US Dollar (UUP) turned around and surged +0.64%, seemingly helped by the Chinese New Year Holiday.