Stocks Are Falling on April 20 As Oil Prices Plunge
The next significant level of support for oil comes around $10.50, a price not seen in decades. The oil market is telling us that not all is well in the economy and that demand is weak. I talked about this disconnect in the week ahead commentary for subscribers yesterday.
Simple, put, the signals from the commodity, bond, and forex market are not reflecting the same bullish optimism of the equity market.
S&P 500 (SPY)
The S&P 500 ETF is merely only giving back part of what they gained on that big closing cross, end of the day buy program into options expiration on Friday. The first level of support comes at $273.60, and then $263.40.
Bank of America (BAC)
Bank of America is falling some today, and I still happen to think that the stock is going to refill that gap around $20.
This article was written by Michael Kramer the financial market strategist and the portfolio manager of the Mott Capital Thematic Growth Portfolio.
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