The Gilmo Report

August 22, 2018

August 22, 2018

The S&P 500 Index cruised to an all-time high yesterday on an intraday basis and looked ready to book it as an all-time closing high. That was before news hit that former Trump attorney Michael Cohen had struck a plea bargain with prosecutors in his case.

While I don’t think I need to get into the dirty details of it all, suffice it to say that the news-related shift in market direction is nothing new for this market. As I’ve noted in recent reports, whether it’s a trade tiff with Europe, or a trade war with China, or sanctions on Turkey or Russia or Iran, this market is constantly forced to deal with bumps in the road caused by news of one kind of another. Yesterday’s news was one more new spin on the entire theme that nobody was really expecting.

New highs for the S&P had to wait, as the indexes reversed to post stalling days on higher volume. Overnight, futures sold off, but by the open things had flattened out, leading to a benign open this morning, and a subsequent rally took hold. By mid-day, the market appeared to be shrugging off the Cohen plea bargain news, and I figured maybe the S&P would make another run at all-time highs.

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