Morning Commentary
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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9/3/2025 7:16 AM | NOT AN EMOTIONAL RELEASE (YET) |
9/2/2025 1:37 PM | Gloomy Start |
9/2/2025 9:44 AM | REMEMBER SEPTEMBER? |
8/29/2025 1:33 PM | Fed Governor Cook(ed)? |
8/29/2025 9:49 AM | THE OTHER TECH NAMES AWAKEN |
8/28/2025 1:37 PM | Rallying Resolve |
8/28/2025 9:44 AM | NVDA TRIPPED UP |
8/27/2025 1:31 PM | All Eyes on Nvidia |
8/27/2025 9:45 AM | THE BEST BOUNCE EVER |
8/26/2025 1:16 PM | Bumpy Session |
8/26/2025 10:10 AM | MORE FED DRAMA |
8/25/2025 1:12 PM | Major Indices Split |
8/25/2025 9:41 AM | Sea Change |
8/22/2025 1:28 PM | Powell’s Posture |
8/22/2025 9:47 AM | JAY POWELL'S LAST SHOT |
8/21/2025 1:37 PM | Market Falters |
8/21/2025 9:55 AM | NICE BOUNCE |
8/20/2025 1:42 PM | Persisting Weakness |
8/20/2025 9:45 AM | TECH HITS AIR POCKET |
8/19/2025 1:29 PM | AI Bubble Talk |
8/19/2025 9:34 AM | HIGH VALUATIONS ONLY MATTER WHEN THE MARKET IS GOING DOWNHILL |
8/18/2025 1:25 PM | Quiet Start |
8/18/2025 9:45 AM | DOG DAYS OF HOPE & HUSTLE |
8/15/2025 2:00 PM | Choppy Session |
8/15/2025 9:56 AM | BY A NOSE |
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