The Market May Have Hit A Ditch

Is the huge rally stalling out?

Dan Greenhaus at BTIG observes:

We’re increasingly turning our focus towards earnings although first we must get through next week’s central bank meetings and nonfarm payroll report in the U.S. FDX is acting terribly after its report (down 11% since the 15th) and ORCL is down another 3.25% since falling nearly 10% after reporting. What was a relentless march higher for equities has clearly hit a rough patch and to repeat, while we expect higher prices, the near term could be tough as this rally just appears tired.

We're just talking about a few weak stocks and a handful of days of going nowhere. Tired is probably a good way to put it.

And it's not just stocks.

The rally in the Nikkei and the down move in the Japanese yen had been big parts of the story, but the yen decline has stalled out.

Here's a look at dollar vs. yen. It looked like the dollar was zooming straight to 100 against the yen, but it's weakened a bit, as the yen has strengthened.

This is not a big worrisome development or anything, just a note that some big recent trends have halted outside of the S&P 500, as well.