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Morning Commentary

NOT AN EMOTIONAL RELEASE (YET)

By Charles Payne, CEO & Principal Analyst
9/3/2025 7:16 AM

When you Google “Cathartic Purge,” or a variation of the phrase, numerous articles appear from May 2022 and late 2021, when the market was on its heels and experts agreed it was a good thing.

These days, even the tiniest of declines is no longer considered a cleansing that can renew a market rally, but instead the beginning of the end of the world.

Pullbacks, no matter how brief or shallow, are used to reinforce political opinion rather than market analysis. In that regard, more red than green on the screen sparks fatalist conversations.

Yesterday, there was undoubtedly more red than green on the screen, as only two sectors managed to close in the plus column.

Heat Map

A more nuanced look at the market revealed a predominance of green, primarily in defensive areas, such as Consumer Staples (XLP) and Health Care (XLV).

The oil patch also saw action. There was a smattering of buying in the entertainment sector.

Market Resolve

The S&P 500 (SPX) closed at the high of the session and above the gap opening print. This is a strong sign of resolve. More broadly, the only factor in the green was mid-cap momentum.

Market Breadth

The biggest hits occurred on the NASDAQ, where decliners outnumbered advancers by a factor of two and new lows surpassed new highs. It's shocking, a couple of poor sessions that new lows would swell above new highs, but that’s also the nature of ‘High Beta’ names.

Overall, volume was light, but it should pick up as the week progresses, leading up to the big jobs report on Friday.

Market Breadth

NYSE

NASDAQ

Advancers

816

1,506

Decliners

1,985

3,076

New Highs

74

100

New Lows

24

116

Up Volume

1.48 billion

3.65 billion

Down Volume

2.20 billion

3.54 billion

Fear Index

While the Greed & Fear Index remained in the greed zone, it inched closer to neutral. This gauge works best when it’s at extremes, but right now, it's just marking time.

VIX Vaults

The Volatility Index (VIX), aka The Fear Index, erupted higher at one point, reaching 19.0 before settling at 17.17.

This is Cathartic, Too

After the close, a judge ruled that Alphabet/Google (GOOG/L) could keep Chrome, but must share some search engine data with its rivals.

The news sent shares soaring 7.0% in after-hours trading.


 

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