Suddenly, markets are hitting trouble all over the place. I can’t tell you how many outs we have left but it appears we are starting to run low. We are coming to the slowest trading period of the year so I don’t think the market is in any imminent danger but I am starting to get concerned about what can happen in the fall.
Crude oil prices took a nosedive on Wednesday afternoon when the EIA published its latest supply data. Although this showed that crude stocks fell by a good 3.9 million barrels last week (which was the first decline since early January), oil prices were unable to advance any further than they already had.
We could have a new all-time high in the Nasdaq as soon as tomorrow. I don’t put the same weight about all-time closing highs that some technicians do but the highlight of the week was the closing high for the Nasdaq.
European banks are still out on holiday today, but most major markets are open and today’s reaction to Friday’s disappointing U.S. jobs report shows that the market is pricing in a lower probability of a Federal Reserve rate hike in Q3.