Market strength for equities has been gradually eroding and reflected in the S&P 500’s new 3-week low. Today’s weaker than expected private sector employment numbers from ADP concerned investors. If it is a barometer for Friday’s upcoming Labor Department non-farm payrolls report, then it does not bode well for what has been one of remaining pillars of strength in the US economic recovery. Trading below its 20-day moving average and headed to test its widely followed 50-day moving average, the S&P 500 is reaching the point of critical mass in terms of downward momentum.
No further comments this evening… (Please see our ETF performance summary table below.)