S&P futures dropped while Tom Demark, a famous technical analyst, was on our air, saying the next couple days were critical, and that if stocks moved down in the next couple days they would continue to fall no matter what the jobs report said on Friday.
Maybe. It was widely noted Mr. Demark is selling market timing seminars, one of which he is doing today in New York.
Yesterday's volume of nearly 4.2 billion shares was heavy but not as heavy as Monday's selloff; breadth was 3 to 1 advancing to declining stocks, good but not great.
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In other words, the selloffs are coming on greater breadth and volume than the rallies. We need to see that moderate.
In Japan, the Nikkei rose 1.2 percent, fueled by decent earnings from Toyota and Panasonic.
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Another issue impacting the market are perceptions of Fed tapering. Traders will be listening for any comment on whether the taper will continue. Fed hawk Charles Plosser (Philadelphia Fed) and moderate Dennis Lockhart (Atlanta Fed,non-voting member) are speaking today. Yesterday Chicago Fed President Charles Evens said it would take a "high hurdle" for the Fed to move away from tapering, one reason the rally was rather muted.