Market Pulse on August 27th

Olivier Rigot, EMC Gestion de Fortune

1 minute de lecture

S&P 500 2896,71 +22,05.

The stock market jumped at the opening, leaving a gap open, on news that a deal with Mexico was on the verge of being signed, which may open the door to a similar one with Canada and may put pressure on China. Breadth closed on a strong note: 2195 stocks advanced compared to 1224 that settled down. We observed a lot of buying pressure, as measured by our various indicators which may indicate that short sellers were on a hurry to close their positions; options traders were eager to buy calls to participate to the upmove. The open question: is the market going to close this gap which occurred on virgin territory? According to Elliott wave theory, this is not the case if the market has reached its point of «recognition», time will provide the answer.

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