by Adam Taggart
There’s an important battle going on in the market today.
The S&P 500 cracked below its 200 daily moving average (DMA) this morning and the usual suspects have been trying to undue the damage ever since. A major attempt to rally failed two hours ago, leaving only an hour left for the authorities to ‘save the day’:
If the S&P closes under its 200 DMA, it would be an important technical indicator of future weakness to come. The massive rally since the beginning of January is very long in the tooth right now and has been flying in the face of a growing parade of awful economic data indicating much of the global economy is falling into recession.
Sven Henrich does an excellent job summing up what’s at stake in this recent interview:
As Charles Hugh Smith just mentioned to me, if the tomorrow’s jobs report comes in gangbusters, that could be the green light the Fed needs to resuming tighetning (as Wolf Richter warns is not as unthinkable as many currently expect) and, boy, would that shock the market negatively.
All in all, this is an important — possibly pivotal — time for the markets. We’ll be watching them closely here.
Specifically, I’m watching them using our newly re-designed Today’s Markets page, which I must say I’m really appreciating as a real-time dashboard for market activity.
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