Lines in the Sand Drawn

We saw a fairly strong selling wave on Thursday during the first hour of trading. However, by mid afternoon, the bulls stepped right back up and recouped all of the losses before closing modestly lower. Their resilience continues. Given how most of the major indices are positioned, the bulls need to score new highs sooner than later to reset the clock. On the bears’ side, a close below Thursday’s low should set a deeper pullback in motion. That’s the one I have had my eye on since last week.

Sector-wise, it’s more of the same, however, the banks are under more pressure and may be in jeopardy of a decline to new lows for 2017. That would certainly weigh on the stock market. High yield bonds, on the other hand, remain solid and that’s why I am not looking for much more than a modest decline towards Dow 20,000.

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Paul Schatz, President, Heritage Capital
Paul Schatz, President, Heritage Capital
If you have at least $250,000 of investable assets and would like to schedule a complimentary meeting, call, or video conference with me, please click on my calendar here email me at Paul@investfortomorrow.com or call the office directly at 203.389.3553.

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