With an impressive week and a half, the bulls have just about repaired the damage that occurred in July and early August. Yes, global headlines are not quite as disturbing in recent days and economic data continues to get gradually better, but the impressive thing is how quickly the technical damage was repaired. Once the bulls recaptured 1950 on the S&P, there has been little resistance by the bears.
As for today, the Dow Jones Industrial Average was up 80 points to close at 16,919. The S&P 500 was up 9 points to finish the day at 1981. Gold was down $3 to trade at $1296 per ounce, while oil was down $1.90 to trade at $94.51 per barrel WTI. On the economic front the CPI number was modest but creeping upward, and the Housing Starts number was better than expected.
The bears have to be very frustrated at the moment. It sure looked like there was enough global unsettlement to provide the fuel for at least a mild correction. As of this moment, it seems that we may have just experienced another minor blip on the bullish radar screen. Of course headlines can change quickly (as we have been saying) so the bulls can’t get too comfortable just yet. Nevertheless this recovery has been impressive. Can the bulls now recapture the old highs? Stay tuned.
Have a nice evening everyone.