U.S. markets trading mostly lower throughout Thursday’s session with the Dow showing continued strength after setting a fresh all-time intraday of 22,216. The fifth-straight win for the blue-chips was offset by weakness in the broader market although the damage was limited.

The Utilities and Real Estate sectors showed the most strength, rising 0.8% and 0.7%, respectively. Consumer Discretionary was the laggard after pulling back 0.5%.

Global Economy – European markets were mixed after the Bank of England left rates unchanged but warned that rates could rise faster than traders currently are pricing in. France’s CAC 40 index gained 0.2% while the Stoxx Europe 600 was up 0.1%. The Belgium20 edged higher by a quarter-point, or 0.01%. The FTSE 100 sank 1.1% and the DAX 30 was lower by 0.1%.

The Bank of England’s Monetary Policy Committee voted by a majority to maintain its Bank Rate at 0.25% and held its bond buying programs steady.

Asian markets traded mostly lower following disappointing economic data out of China and the world’s 2nd-largest economy. China’s Shanghai index and Hong Kong’s Hang Seng Index declined 0.4% and Japan’s Nikkei gave back 0.3%. Australia’s S&P/ASX 200 slipped 0.1% while South Korea’s Kospi jumped 0.7%.

China’s Industrial output rose 6% in August from a year earlier, compared with a 6.4% increase in July. This fell shy of expectations for 6.6% growth.

China Retail sales expanded 10.1% in August from a year earlier, also slowing from a 10.4% increase in July. Forecasts had predicted a 10.5% rise in August.

U.S. initial jobless claims fell 14,000 to 284,000 in the week ending September 9th and below expectations of 302,000.

The Consumer Price Index rose 0.4% in August, which was a tick more than expected, while the core rate increased 0.2%, as forecast.

The Bloomberg Consumer Comfort Index Level checked in at 51.9 for the week of 9/10.

Market Sentiment- The iShares 20+ Year Treasury Bond ETF (TLT) traded down to $125.91 intraday with lower support at $126.25-$126 holding. The rebound to $126.89 into the closing bell failed lower resistance at $127-$127.25.

The $126 level has served as longer-term support since mid-August and the 50-day moving average remains in a solid uptrend.


Market Analysis- The S&P 500 ETF (SPY) made a solid move above $248 to start the week and a level that served as prior resistance throughout mid-July into early and late August.

This level will try to hold on a close back below $249.50-$249.25. Today’s intraday low reached $249.47. Continued closes above $250 keeps $252-$252.50 in play. Today’s all-time high reached $250.32.


The iShares Nasdaq Biotechnology ETF (IBB) has been in a nine-session holding pattern following its recent breakout above $330. This level served as prior resistance in July and is current support on a close back below $332-$331.50.

The intraday low reached $330.12. Current resistance is at $335-$336 with the recent 52-week peak at $336.72. A move above $336.75-$337 could lead to a continued run towards $340-$345.


All the best,
Roger Scott