No sense in figuring out yesterday’s market behavior. All major market ETFs rallied all of a sudden at mid morning for no obvious reason other than that the S&P 500 bounced off its 50-day moving average; a bullish sign.
Let’s face it, economic news was miserable.
The S&P Case Shiller index of home prices for 20 markets fell in January for the seventh straight month in a row, which means that those hoping for a real estate recovery won’t see it for a while. This translates into housing being a continuous anchor as far as fuel for economic growth is concerned.
Consumers are no longer as confident as they were in February as the Confidence Index took a dive from 72 to 63.4, a three month low for this barometer.
Nevertheless, the markets headed higher, although on low volume. The focus is now on today’s ADP Employment index, which is to be followed by Friday’s unemployment numbers.
Depending on the outcome, there could be enough fireworks to push this market in either direction.