I don’t often comment on a day’s price action in the stock market, but thought I would. The U.S. stock market reversed up somewhat today. Market trends swing up and down on their way to a larger trend. Notice at 3pm the stock indexes almost lost all their gain for the day.
The interesting observation today was the leadership. Energy and Basic Materials have been the biggest losers the past three months and they moved up the most.
Below are the U.S. sector returns over the past 3 months after todays close. You can see the two biggest losers were today’s winners.
It will be interesting to see if this is an oversold bounce or it reverses to a lower low.
Trends unfold as swings up and down over time. They don’t go straight up or down…