In regard to this week’s news flow, apparently the market doesn’t think whatever it was that went on in Syria matters for US corporate profits. At the onset of the bombing Thursday evening S&P500 Futures fell 20 points, but within a couple hours prices had completely reversed and were nearly flat on the session. We also saw a softer than expected Jobs Report for March. With the combined military action and weaker than expected economic report I would have expected the market to be lower by at least 1%. That simply wasn’t the case at all as for most of the day prices flipped into the green multiple times and ended flat on the day.
It is some very interesting price action we are seeing. Nobody is committed to selling this market. In the face of bad news on multiple fronts it simply shrugged and relatively strong stocks continued to rally. The recent action overall has been softer for the past month, this “event” seemingly should have caused raucous noise and very volatile trading, yet it didn’t. Be sure to note that behavior. It is suggestive of great strength in the underlying price action.