Not very festive

It looked like we could have closed in the green just 5 minutes before the cash close. But bam! The bears gave the bulls a big F U and the ES quickly dove 10 points in as many minutes…and kept going for another 10 minutes into the futures close.

“Death Cross” is upon us…. Y’know when the 50-day moving average crosses below the 200-day moving average. They are at the same place right now, but one more down day will send us well below. The last time this bear signal happened was Dec. 2007…. and you do remember what happened the next 15 months, don’t you? You get the picture. But y’know, everybody is talking about it…even the TV talking heads….too much. Since everyone is talking and expecting it, maybe it won’t happen this time….or will it?

The Nasdaq has 10 down days in a row. I think this may be a first. It had 9 straight red days back in 1994. Since we broke the record it may be time for an up day.

Overall it was a very odd day – stocks down, VIX down, bonds down, dollar down, oil down – just about every asset class. So there is a lot of figuring out to do. We do have a good thing about to happen…..Congress is going on break….and when they are not in session, the markets go up. So I’m thinking next week is an up week.

And if not, at least it will be a short week. Have a wonderful weekend.