In reading IBD tonight, I think the following sums up what we have been saying for some time. The market is struggling with what to do next - while it is making up its mind, not much is happening either on the up or down side.
IBD [snip]
<<Though we've mentioned this point in The Big Picture several times in the last few weeks, it bears repeating: Since Jan. 16, the Nasdaq has logged just one notable up day in higher volume.
In other words, only once in 6 1/2 weeks have institutional investors shown clear signs of interest in buying stocks. Without big-money support, neither the major indexes nor individual stocks are likely to make much headway.
Pundits have speculated on the whys for some time now. Caught between earnings seasons, the flow of potential positive news has slowed.
Some opine that fears over future Federal Reserve rate hikes have left investors feeling skittish. The dollar's recent rise — it again hit 2004 highs vs. the yen and Euro Wednesday — have stoked those fears.
Economic news has failed to jump-start trading. On Wednesday the Institute for Supply Management said its services index fell to 60.8 in February from 65.7 in January. Its employment index sank to 52.7 from 53.4. Readings above 50 suggest expansion in the services sector.
Friday brings the nonfarm payrolls reading for February. Consensus calls for 125,000 new jobs added to payrolls, vs. the 112,000 new jobs created in January.
Whisper numbers remain higher, though, as economists have eyed the 150,000 figure for several months now, only to see the results fall short each time. Meanwhile the unemployment rate is expected to hold steady at 5.6%.>>
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