It was looking like the bulls might snap the decline today, but they couldn’t hold on.
Both the Dow and the S&P ended slightly down. The NASDAQ did end up marginally, so the optimists can hang their hat on that.
But as we’ve been saying, this market is behaving markedly different than it was just last week. Last week, every down or flat day was saved by a nice end of the day rally. All this week it’s been the opposite, as the bulls have been powerless at the end of the day.
So what’s the problem? Well, as David Rosenberg says, the green shoots are brown. The economy still sucks, and the second-derivative gains aren’t doing it anymore. FedEx (FDX) beat earnings expectations, but we’re long past the point where beating earnings on cost cuts (while missing on the top line) will do anything. Foreign markets are down. China is threatening to set off a trade war, and a brand new regulatory system is coming to Wall Street.
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