The Closing Look

Stocks opened sharply lower on Thursday after China said exports plunged 10% overnight. China is a major exporter so the fact that exports are down 10% reflects poorly on the health of the already fragile global economy. Right after the open, the Dow Jones Industrial Average & the S&P 500 briefly undercut important support (September’s low that Gary has highlighted for you) before buyers showed up and helped defend that important level by the close.

Gary’s Thoughts: Mr Market had a chance to break some vital support but the pixie dust sprinkled down and support held after undercutting. This is quite important. Doesnt mean we are going anywhere to the upside but goal-line stand held. Tomorrow, a few important financials report. Pay attention. We did want to mention a few leading names bounces tepidly off of the 50 day average and we may have a group trying to actually emerge in the airlines as many now trying to come up the right side of bases. Normally, when markets have washouts, you get some upside testing.