Thursday's market mischief was entirely machine driven as programmers must have lower gap opens programmed to buy while any negative news from Europe is programmed to sell. Honestly I think it's that simple.
The weekly charts so often posted here for the major indexes still have the lingering bearish H&S tops. But, they're quite long in the tooth now and are losing their validity if only because markets didn't crater. A trading range environment is all this pattern has yielded thus far. The Fed's policies of near zero interest rates and POMO have kept markets propped as investors have few investment choices except bonds, Apple and precious metals. Bonds with negligible yield aren't much more attractive than cash at the moment. But investors are a yield hungry group and prone to take risk taking on the notion they'll get their principal back eventually. This is a bad situation.
Durable Goods and New Home Sales are on tap for Friday as we near the end of September.
Let's see what happens. You can follow our pithy comments on
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