UPDATE: 11:55 AM
SPX just completed its Bat pattern at 1414.97. If it’s going to reverse — and not bust the H&S, etc — now is the time.
UPDATE: 11:45 AM
SPY just tagged its Bat pattern .886 at 141.47; SPX is almost there. I was stopped out of most of my shorts this morning, will re-establish some positions here — again, with tight stops just in case the alternative path holds on.
Despite this non-sensical strength this morning, the RSI channels argue for a sharp reversal.
ORIGINAL POST: 10:30AM
Dollar up nicely, EURUSD off. Stocks up strong, but running into overhead. SPX is about to complete a bearish Bat pattern at 1414.97 (the points are labeled in purple.)
Census Bureau March Construction Spending came in at 0.1% increase over February, versus 0.8% increase expected and -1.4% prior month. The strength, such as it was, came in private sector, with lodging and office supplying practically all the good news. Public sector was off substantially, with infrastructure projects leading the decline.
The ISM Manufacturing survey just released with reading of 54.8 versus forecast of 52.5 and prior of 53.4. This is a fairly positive report, and contrasts starkly with yesterday’s PMI Non-Manufacturing survey, not to mention virtually all of the regional manufacturing surveys. Doesn’t smell right.
Looking for more on this, but just saw a news blurb about JP Morgan tax exempt money market fund — Moody’s withdraws Aaa-mf rating. The JPM website suddenly doesn’t mention the Moody’s rating…