Bearish Sentiment Rose Yesterday
The market opened on a strong note, but is fading quickly. I wouldn't be surprised to see a mixed day today, as it is very difficult to sustain the kind of momentum we have seen lately.
Oil had a big day yesterday, spiking more than $1 to get back above the $60 level. Bond yields have been steady to lower, with the 10-year yield currently hovering around 4.58%.
And despite the mild gains yesterday, investor sentiment was pretty bearish. The CBOE put/call ratio finished above 1.0 for the first time in a while. And the ISEE dropped -19% to a level of 132. This is a good sign, as we want to see skepticism toward the market remain elevated.
The bond market closes early today, 2pm EST, fyi.
In other news and notes:
- Asian markets rise by more than +1.0%
- LMT awarded $1B Air Force contract
- CIBC says buy CWTR on weakness
- DELL reports solid earnings; stock gaps up
- CROX to launch Disney line of footwear
- China announces plans to build world's biggest solar plant
- Michigan Sentiment 92.0 vs. 93.0 consensus
- Dollar hits 5 1/2 month low vs. Euro