Although the broader market did make a higher high and a higher low on Monday (comparing to Friday), the way that it closed wasn’t quite convincing. The market still looks “undecided” to me and we’ll see if we can get clearer signals toda. I'm still keeping cash!
On Monday, the SPX attempted to break above 1460. But, it wasn’t able to keep that altitude for the close. It came back down to within its support range (1440-1460).
It was a very similar picture for the Nasdaq.
Sears Holdings Corporation (SHLD) announced a $1.5 billion of share buyback on Monday which sent its shares up more than $7!! Energizer Holdings Inc. (ENR) got an upgrade from SunTrust Monday morning, and its shares closed up more the 10%! Oil transporters seem to have caught people’s attention today as Overseas Shipholding Group Inc. (OSG), Teekay Corp. (TK), and Frontline Ltd. (FRO) all made solid gains (OSG +7.91%, TK +3.68%, FRO +2.8%). Computer Sciences Corp. (CSC) also jumped more than +9% on Monday!! It confirmed its June quarter forecast, while delaying the actual report.
In Asia and Europe, the central banks are maneuvering funds to help to get their banking systems back to normal. In Japan, according to Reuters, Bank of Japan [BOJ] actually had to "drained money from the country’s banking system as surplus funds drove down the call rate." The European Central Bank injected another $65.29 billion in overnight funds on Monday. The Asian markets are basically flat, fluctuating up-and-down in tight ranges, on Tuesday morning.