The 50-DMA Holds and the Market Rebounds

Yesterday, the S&P 500 dipped below its 50-day moving average but importantly, did not close below it. The market is rebounding nicely today.

Some of the big losers yesterday were airlines and cruise stocks. In other words, companies tied to lockdowns. That’s the fear hanging over Wall Street.

This week is all about earnings. We’ll get our first two Buy List earnings reports on Thursday.

This morning’s housing starts report showed an increase for June. Housing starts increased 6.3% to a seasonally adjusted annual rate of 1.643 million. Economists had been expecting an increase of 1.590 million.

The other report was for building permits. That dropped by 5.1% last month. Since May, lumber futures are down 70%.

Posted by on July 20th, 2021 at 11:10 am


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