There’s a quote that comes to mind given this week’s market price action. Jesse Livermore said “The stock market is never obvious. It is designed to fool most people, most of the time.”
Today, from open to close, this market went nowhere. The Dow closed down -9 points, the SPX down -7 points. The intraday action is what told the tale. At one point during the day the Dow was above 24,000, but was just too weak to be sustainable.
What now? Honestly, it’s tough to say. We are of the opinion that this market is heading lower before getting back to Dow 25,000 – it really just depends on how this market wants to get there. Whether it’s another head fake above Dow 24,000 and then back down, the price action tells the story, and as of now, the bears seem to have control of the ball.