Notice: To view this week's big picture outlook, click here. What Happened: After a slew of the earnings reports by heavily weighted index constituents, U.S. index futures further accepted lower prices. What Does It Mean: Earlier in the week, the S&P 500 failed to drum up initiative buying after an upside break of the $3,852.50 ledge. Participants sold the break, introducing excess (which forms after an auction has traveled too far in a particular direction and portends sustained reversal) and acceptance below the $3,824.00 – $3,763.75 balance-area. This invalidated last week's break-out to new highs.
Market Commentary For 1/29/2021
Market Commentary For 1/29/2021
Market Commentary For 1/29/2021
Notice: To view this week's big picture outlook, click here. What Happened: After a slew of the earnings reports by heavily weighted index constituents, U.S. index futures further accepted lower prices. What Does It Mean: Earlier in the week, the S&P 500 failed to drum up initiative buying after an upside break of the $3,852.50 ledge. Participants sold the break, introducing excess (which forms after an auction has traveled too far in a particular direction and portends sustained reversal) and acceptance below the $3,824.00 – $3,763.75 balance-area. This invalidated last week's break-out to new highs.