We had weak data this morning which pushed the market down pretty hard. The S&P 500 found support around 1300 and the Financials caught a bid off that level. The pop was short lived however and the major indices all closed down for the second day in a row. So we have put the month of May astern, losing over 6% Disappointing data played a part in dropping the S&P 500 to the 1300 line, which provided a floor for a rebound amid renewed interest in Financials, but the attempt to advance lost steam and left the stock market to suffer its second straight loss. During the course of May the broad market sank more than 6%, sell in May and go away… well we got the first part done.
The ADP Employment numbers came in light at 133k increase in private payrolls, the expectation was for 157K. The ADP number is taken as a preview of the government numbers due tomorrow. This combined with a weekly claims number of 383k when the target nmumber was 369k makes for some serious storm clouds gathering on the employment front.
We had two other reports that did not impress. GDP missed the mark with the 1st quarter numbers clocking in at 1.9% less that the 2.2% prelim. Also the Chicago PMI was expected to show an improvement over the April 65.3 reading but in fact came in at a very soft 52.7. All this combined with European woes that seem to hang around like a fog seem to paint a fairly negative picture in the short term.
There are 2 trades on our radar tonight, a potential long entry in Al [Content protected for Alphasubscribers members only]
Breakout - $105.00
Trend - $66.00