Market opens lower again, failing at the same mid 1900 resistance level on the S&P that we’ve been focused on all year. We have been in a defined range and clearly the recent rally was not strong enough to punch thru to higher levels. There is more work to be done. Crude continues its volatile price action, giving up the big gains from last week. OPEC can’t be trusted in what they say. There is absolutely no indication whatsoever that production cuts are coming. Iran is bringing on new supplies for the first time in years. Iraq ramping too. The Saudi’s and Russians discussed a production freeze, near all-time high levels based on January output. That was a complete fakeout. You just knew it. There’s more talk about the risks of Britain leaving the EU, which is not helping global markets. Trump crushed everyone in the Nevada caucus, gaining even more momentum in his bid to take the White House. Interest rates are headed lower again as money seems to be seeking safety. The 10-Year Treasury is back down to 1.6%. It’s another day in 2016.
Have a great day.
Mike
