Thursday May 23, 219
Transports and Small Caps lead market direction.
Transports are setting up a re test of the 10,000 level. Taking that out would suggest a re test of the 8,600 level. The weakness in Fed Ex and trucking stocks suggests economic weakness ahead.
Fed Ex could not even challenge its 200 day MA. UPS looks sick as well.
Trucking Hunt Transport
Same as Fed Ex
In multiple newspaper columns I have wondered just how long it would take for the negative political mood to infect the stock market. We are getting our answer.
Trump walked out of a Pelosi Schumer meeting yesterday saying he would not stand for the impeachment talk and a deal. More Dems call for impeachment which means Dems who won in swing districts would have to vote on the issue. That would likely cause the independent voter some consternation, and Trump is of course aware of this.
Markets dislike uncertainty and that is all we are getting from both the 23 Dems running and various Republicans.
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