Michael P. Reinking, CFA
Sr. Market Strategist

Yesterday, after three consecutive weeks of declines, equity markets opened to the downside but caught a modest bid to end the session in the green. The initial weakness seemed to draw in the “buy the dip” crowd as stocks were starting to move into short-term “oversold” conditions, at some key technical levels. However, that bid proved to be short lived. Futures turned lower again overnight with Asian markets and by the time we got to the opening bell S&P futures were down ~0.7% testing yesterday’s lows. Those lows initially held but ultimately gave way as consumer confidence fell for the second consecutive month. The modest overnight pullback in yields and oil also reversed adding to the negative feedback loop we’re currently trapped in. The S&P 500 has extended to the downside after breaking below yesterday’s low (~4,300) and we are currently down ~1.35%. Yesterday, the Dow Jones Industrial average tested its 200d ~33,800 but it is currently breaking below that level joining the Russell 2k which broke its 200d last week. As a point of reference, the S&P 500 is currently about 2% above its 200d (~4,200). Meanwhile the NYSE FANG+ index, which is the only index still holding above its August lows is still >10% above its 200d.