S&P 500: The Glass Half Empty
The S&P 500 has already violated the blue trendline below and retested the line below the orange arrow. If the bulls can mount a rally this week, 1925 can be used as a short-term guidepost.
CEOs: Becoming More Pessimistic
A survey of CEOs aligns with the stock market's recent weakness. From Bloomberg:
Chief executive officers have turned pessimistic on global economic growth, according to a new survey by PricewaterhouseCoopers LLC.
Released on the eve of the World Economic Forum's annual meeting in Davos, Switzerland, the poll of 1,409 CEOs from 83 nations found 27 percent expect the economic outlook to improve this year, a fall from 37 percent last year. Twenty-three percent said it will worsen, up from 17 percent in 2015.
NYSE: The Bigger Picture
From a risk-reward perspective, the present day weekly NYSE Composite Stock Index's chart has some of the same concerning elements found in September 2008. This week's stock market video compares the chart below to the 2016 version.
S&P 500: The Glass Half Full
If we examine the 2016 S&P 500 daily chart using high, low, and closing prices, the bulls still have reason to hope. The lowest intraday low made in August 2015 was 1867. The S&P 500, thus far, has been able to remain above 1867 on a closing basis. Monday's close was 1881. The odds of bad things happening increase if 1867 is taken out on a closing basis.
