Markets melted up from the flat opening to a respectable green level by the noon hour. The averages are trading at the resistance set up in March through August 2015 and are unlikely to penetrate that level without some serious investor participation in the coming sessions. Afternoon decline likely.
Here is the current market situation from CNN Money
North and South American markets are mixed today. The S&P 500 is up 0.74% while the Bovespa gains 0.53%. The IPC is off 0.21%.
Session short-term indicators have sea-sawed at the neutral line for most of the morning and volume levels are dropping to anemic. The large caps have not gone higher than Friday's session highs and the small caps are trading at their respective resistance. The chances of a small correction to cover a gap made on October 23rd is glaringly apparent, so be prepared for a sharp reversal.
$NYA200R chart below is the percentage of stocks above the 200 DMA and is always a good statistic to follow. It can depict a trend of declining equities which is always troubling, especially when it drops below 60% - 55%. Dropping below 40%-35% signals serious continuing weakness and falling averages.
(Reuters) - Shares of HP Inc , which houses the legacy printer and PC business, soared as much as 14.4 percent on Monday, while those of Hewlett Packard Enterprise Co , considered the faster-growing of the two, fell as much as 5.8 percent.
LONDON/SYDNEY (Reuters) - Massive monetary stimulus from Chinese and European central banks has done little to spur factory growth, moving a debate over more easing up the agenda and raising doubts over whether U.S. interest rates will rise this year.
WASHINGTON (Reuters) - U.S. manufacturing activity slowed in October for a fourth straight month, but a rise in new orders offered hope for a sector buffeted by a strong dollar and relentless spending cuts by energy companies.
Confusion reigns... China's Manufacturing PMI is in contraction according to both the Official and Markit/Caixin measures (but the former was flat and missed while the latter rose and beat "confirming economic stability" according to the 'official' press). Following the largest strengthening fix for the Yuan in 10 years, both the onshore and offshore Yuan are weakening by the most since the August devaluation. Finally, having cliff-dived at the open, Chinese stocks have bounced back to unchanged on the Ciaxin PMI beat (but US equities drift lower still).
It's a rise and a beat & a miss and a drop for Chinese manufacturing...
The last two times the Caixin measure has diverged positively from the official data, it has converged lower in the next 3 months.
After the biggest strengthening fix in 10 years...
Onshore (and offshore Yuan) are weakening by the most since the August devaluation...
The headlines say construction spending grew. The backward revisions make this series very wacky - but the backward revisions this month were upward making the data better than the headline view. In any event, construction spending is growing much faster than the economy in general.
S&P 500 companies are beating third-quarter earnings expectations at a healthy clip, but overall EPS is still expected to suffer a second-straight quarter of year-over-year declines for the first time since the Great Recession.
The U.K. benchmark ends just fractionally higher as weak Chinese factory data drags on resource companies, even though the final U.K. manufacturing PMI for October shows the biggest point gain in the surveyâ€™s history.
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