Wednesday, September 02, 2009

Morning Briefing for September 2nd: New Lows

Stocks continue lower on a less-than-inspiring employment outlook. Interestingly, NQ futures did not make new lows on the numbers, even as the ES futures moved to new lows. As of this writing at the open, looks as though that divergence may hold. Most importantly, I'll be watching to see if we sustain the move below yesterday's lows. As I noted in the recent post, there is a tendency to see a bounce following days of strong downside momentum.

Meanwhile, we're seeing the U.S. dollar trade a bit stronger vs. the euro and Aussie dollar; oil is down (though a bit off its lows); and gold is once again bucking the commodity pattern and trading higher. That's a market worth watching, as I noted a little while back. Keep an eye on NYSE TICK; weak selling pressure would suggest the possibility of sustaining a bounce.