The S&P 500 (SPX) was up 20 points at its high on Friday then switched into reverse and closed down .90 points in a Friday afternoon selloff. The market had rallied in the morning supposedly because Janet Yellen’s speech late afternoon Thursday, left the door a little more open for a rate hike.
But in reality her speech didn’t really offer much different from the rational she gave around not raising the previous week. And talking about her speech. You really need to watch this 3 minute clip of her speech. It is at the very end of her speech.
She cut short her speech after clearly struggling. She did go on to dinner after being checked by the university medical staff that evening. She was back in Washington D.C. on Friday. The Fed would not comment further on Friday.
Also affecting the market on Friday was the High Yield Bond ETF (HYG) and the biotech sector. HYG continued strongly down, closing the week at its lowest close in nearly 4 years. IBB, the Nasdaq Biotech ETF had the biggest weekly drop since August 2011.
The market bounce Friday morning was a continuation of a move that actually started Thursday morning. This was a retracement of the last 5 days down that started late Thursday afternoon on Sept. 17th and ended Thursday morning at 9:30am CT.
In today’s Weekend Market Analysis video I look at yesterday’s price action and for the week. I also look at the last 6-7 days on an hourly basis to see what it is telling us. In addition to our normal ETFs I review the iShares MSCI EAFE ETF (EFA) and the iShares MSCI Emerging Markets ETF (EEM). Stocks in focus are Celgene (CELG) and Gilead Sciences (GILD). Continue reading
