Resistance Redux as S&P 500 Again Hits Trouble at 21-Day AverageBy
The line in sand is proving hard to cross.
For the sixth time in seven sessions, bulls on the S&P 500 ran into frustration around a technical level that represents the index’s altitude over roughly a month. It’s the 21-day moving average, which the benchmark poked above just before reversing around noon.
The S&P 500 was back at the doorstep at 12:54 p.m. in New York, up 0.2 percent to 2360.00, less than a point from the 21-day level. The benchmark didn’t move much on Friday, paring earlier losses following a U.S. missile attack on Syria. The Dow Jones Industrial Average gained about 39 points Monday to 20,695.
- Financial shares dropped as much as 1% from intraday high
- Market mixed, with four sectors higher
- Energy shares leading market, up 0.8% as oil rallies for fifth straight day
- After trading below the 30-day average the first two hours, SPY volume jumped to 5.4 million shares from 11:30 to 12 p.m., 69% above average
- VIX up to 14.1, on pace for highest close since Dec. 30
- For Citi strategists including Robert Buckland, stock valuations look stretched on some measures, with global equities now trading on a trailing price-to-earnings ratio of 21, well above long-term median of 17
- While Friday’s jobs report was weaker than expected, it is consistent with the U.S. economy growing at two percent this year, Federal Reserve Bank of St. Louis President James Bullard said in Melbourne Monday
- EARNINGS (S&P 500):
- Next earnings on April 12
- U.S. banks will start reporting quarterly earnings this week, led by Citigroup Inc, JPMorgan Chase & Co. and Wells Fargo & Co
- Stoxx Europe 600 Index closed unchanged
- CAC 40 slid 0.5% as the polls reignited French election concern across asset classes less than two weeks before the vote
- Southern European markets, most sensitive to political risks, were also under pressure with the IBEX 35 Index and the FTSE MIB Index down 0.5% or more
- French bonds fell, widening the yield spread over Germany to the highest since February
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