It’s over folks, at least for the time being. After starting out sharply higher in the morning, the stock market ended down. Not huge mind you, the Dow was off only 34, and the S&P 500 was down just 3. And yes, once again the market rallied off its lows. It’s been doing that some time. But just a week ago, the market would’ve managed to end in positive territory on a day like today.
The bull run has run out of steam, felled by higher commodity prices and yields on long bonds that keep pushing higher.
At this point, all the second derivative news is more than priced in, and we’ll actually need to see real first-derivative gains in order to keep moving higher. Unfortunately, these won’t be seen for a while. In the meantime, continued disappointment on the housing, jobs and energy front will drag the market lower.
Among the losers today: The sleepy financials and consumer-dependent retailers, which are almost entirely in the red.
Lower prices, here we come.