After Wednesday's drop of nearly 1,000 Dow points and 114 SPX points, the market had a very quiet day, but could not manage to get back half of its losses from the previous day. It is strange how we have chaos one day, then calm the next. It is almost an emotional disconnect from the previous month where we had 6-7% ranges every day.
This is how things normally calm down after a major correction. The problem is there is so much time between corrections that people forget what the last one was like, so it is always new and strange.
The SPX opened modestly lower with the cash being down 14.71 points before a rally higher took it up to positive 62.77 points. From that point until the last 90-minutes of the day, we worked our way lower again, and back to the unchanged line. The marker was seemingly desperately looking for direction, and where we should go from here now that we are down -20% going into the second quarter.
The last 90 minutes showed that the adage “never sell a dull market” still holds true. From the unchanged line to the close we climbed. As has been the habit, the last 15 minutes of the day was where the most action was, with the SPX jumping 25 points above the 2500 line to close at 2526.90.
OIL AND AIRLINES
President Trump talked about an alliance he is working on to get Russia and Saudi Arabia to agree on cutting back production. This had oil spike from the basement it has been hiding in, to move up $6.50 at one point. Oil has been playing with the magic $20 price, and making the markets nervous; however, Trump's words had the futures contract jumping hard. The USO index had to stop trading a couple of times to catch up with order flow.
Meanwhile the airlines and travel stocks took a beating. Boeing (BA) and American Airlines were both down almost 6%. Just a short time ago, Boeing had jumped from $90 to $180 in a couple of days, and today it closed back at 123.27.