More Weakness In Housing

The market opened higher this morning, but quickly sold off on the weaker existing home sales report. The report showed a further weakening in the housing market and dropoff in prices. But with mortgage rates moving lower, I think we should see a little bounce soon.

NSM cut its forecast, but the semi group (SOXX) is still trading higher. Many chip stocks look washed out, so the group can easily trade higher.

The inventory data on oil & gas this morning showed a smaller draw in inventories, which is slightly bearish for energy prices, and thus weighing on the stocks at the moment.

Bond yields are slightly higher at 4.84%. The dollar is basically flat.

Initial support for the SPX is around 1292, so that is the level to watch.