“Since the 2000 presidential election, the left has worked to undermine the legitimacy of the Electoral College, labeling it a relic of slavery. No doubt, if Donald Trump returns to the White House while again losing the popular vote, these attacks will be renewed with fervor. In fact, it has already begun as commentators denounce the undemocratic nature of the system. Just last month, the New York Times published a piece trashing the Constitution and asserting that the Electoral College’s only purpose was to protect slavery. These critiques are based on misconceptions and hostility toward the very structure of our Constitution... even if slavery had never existed, the states would never have agreed to a method of electing the president that stripped them of having a say in the matter. Protecting state sovereignty and ensuring less populous states had influence were key features of the compromise. Therefore, slavery may have been one of several reasons for the compromise, but it certainly was not the reason." Commentary from...
https://realclearwire.com/articles/2024/09/05/no_electoral_college_is_not_relic_slavery_151560.html
My cmt: As originally conceived, the Electoral College required that a Presidential candidate needed to win a majority of the states to be elected. Without the Electoral College, the U.S. becomes the United Cities of America – that’s where the population is – and look how well they are run.
-Monday the S&P 500 rose about 1.2% to 5471.
-VIX fell about 13% to 19.45.
-The yield on the 10-year Treasury declined to 3.702% (compared to about this time, prior trading day).
XLK – Holding since the October 2022 lows.
XLK – reduced 9/9.
UWM – added 7/15.
QLD – added 7/24. Reduced 9/6.
The Bull/Bear Spread declined again to a bear position at 17 Bear-signs and 4-Bull. (The rest are neutral. It is normal to have a lot of neutral indicators since many of those are top or bottom indicators that will signal only at extremes.)
The Bull/Bear, 50-Indicator spread (Bull Indicators minus Bear Indicators) declined to -13 (13 more Bear indicators than Bull indicators). The 10-dMA continued down, a bearish sign.
The stock market Canary-in-the-Coal-Mine did not feel well today. The 10-dMA of Breadth (% of stocks advancing on the NYSE) dropped below 50%, i.e., half of all stocks on the NYSE have been falling over the last 2 weeks. That’s not a healthy market, but it doesn’t mean we are headed for a crash. It does show internals are getting worse, not better, and that suggests more pain ahead.
To answer the question of how far this pullback may go, we see the following:
-The S&P 500 is 0.6% below its 50-day moving average and 6.2% above its 200-dMA.
-It is 5.5% above the 5 August bottom of the recent 8.5% correction.
This suggests that the bottom of this pullback is likely to be no more than 6% below today’s close. This looks like a retest of the recent low and not much more.
I reduced stock holdings, but I am not overly bearish. This pullback looks like a routine retest of the prior low of 5186. If so, why did I sell? Answer: I could be wrong.
TODAY’S RANKING OF 15 ETFs (Ranked Daily) ETF ranking follows:
*For additional background on the ETF ranking system see NTSM Page at…
http://navigatethestockmarket.blogspot.com/p/exchange-traded-funds-etf-ranking.html
DOW STOCKS - TODAY’S MOMENTUM RANKING OF THE DOW 30 STOCKS (Ranked Daily)
The top ranked Stock receives 100%. The rest are then ranked based on their momentum relative to the leading Stock.
For more details, see NTSM Page at…
https://navigatethestockmarket.blogspot.com/p/a-system-for-trading-dow-30-stocks-my_8.html
MONDAY MARKET INTERNALS (NYSE DATA)
