Yesterday's severe sell-off seemed to come out of nowhere, and is continuing today. On Wednesday, the minutes of the last FOMC meeting were released in the afternoon and this triggered additional buying as it painted the Fed as more supportive and accommodative than Yellen had conveyed in her last statement. Stocks closed towards their highs of the session and many including myself thought the momentum would carry into Thursday.
That obviously did not happen and we ended up with very perplexing market action that appeared to have no real catalyst.
Weekly jobless claims came in at nearly the lowest level in seven years. The last time claims were consistently this low was prior to the financial crisis. Admittedly it's only one small data point, but it was a positive one. And the trend in jobless claims, as seen below, is down.
Federal deficit figures released yesterday also showed improving signs in the economy. As ... Log in or subscribe to continue reading.
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