A mixed bag of economic reports didn’t help matters today after the futures indicated that we were heading lower at the open. Of course there was no way to predict a drop similar to Thursday of last week.
I see this as an opportunity to get in near the bottom on a very oversold market. I will have new buy orders very soon. I just want the dust to settle tomorrow before committing capital.
From a technical standpoint I did not think we would break through 1955, but we did and then some, but the bottom is very close now I think.
U.S. stocks declined sharply on Wednesday, with the fourth quarter starting off on a dour note after the S&P 500’s seventh quarterly gain, as investors fretted global concerns, mixed U.S. economic data and earnings ahead.
Benchmark indexes posted their worst beginning to October since 2011 as investors sought safety in U.S. Treasury bonds and gold,with the CBOE Volatility Index, a measure of investor uncertainty, rising. The Russell 2000 fell into correction territory, down 10 percent from its July record.
The Institute for Supply Management reported its manufacturing index hit 56.6 last month.
A separate report had construction spending dipping 0.8 percent in August.
U.S. private employers created 213,000 jobs last month, with the ADP National Employment Report roughly in line with expectations and coming ahead of Friday’s nonfarm payrolls for September.
Earnings: Constellation Brands, McCormick, Actuant, Global Payments
8:30 a.m.: Initial claims
10:00 a.m.: Factory orders
News Sources: CNN Money & CNBC