Market Commentary, 03/24/16
The U.S. stock market declined for the second day to close yesterday at 17,503.34 on the Dow and 2,036.66 for the S&P 500. Intraday levels indicate another down market today. Both indices have rallied from their respective intraday market lows on February 11th of 15,503 and 1,810. This movement, while upward, has the market in unconfirmed territory –indicating neither bull nor bear.
The U.S. dollar has strengthened as other currencies have faltered this year. While a stronger dollar is good news at home, it can weaken profits for big, multinational U.S. corporations, cut profits of companies that sell goods and services abroad, and pressure crude oil prices.
Tuesday’s early morning suicide attack in Brussels creates another layer of volatility in the market, likely assisting in the most recent market declines.
Despite overall gains, the market has continued to labor in its upward efforts. We expect this struggle to continue as resistance levels of 17,675.83 for the DOW and 2,060.47 for the S&P are drawing near. Our stance is to continue our current defensive posture until we enter a confirmed bull market. While we may miss out on some gains during this slow climb, adding money to the market during this uncertainty is not wise.
Wayne Copelin, CFP®
President, Copelin Financial Advisors, Inc.
514 Brooks Street
Sugar Land, TX 77478
Phone (281) 240-2902
Fax: (281) 240-2856
Securities offered through ProEquities, Inc., a Registered Broker-Dealer and Member FINRA & SIPC Advisory Services offered through Harvest Investment Services, LLC., a Registered Investment Advisor Copelin Financial Advisors, Inc and Harvest Investment Services, LLC are independent of ProEquities, Inc.