It’s Friday the 13th today, which is considered by many to be a very unlucky day. Is it true or just a matter of superstition? I’ll let the reader decide.
The Dow Jones ($DJIA) opened higher this morning and traded nearly +200 above yesterday’s close…then swiftly weakened with the selling in the banking sector. If the market collapses into the close on this Friday the 13th, I’m guessing that traders will embrace the superstition.
I expected some weakness today due to the overall drop off of volume in many indices over the past several days. Why is that important? Consider this: the market is rallying to higher and higher price levels, with lower and lower participation.
This is not a very good development as it shows the lack of enthusiasm as the Dow (or the other indices) trade at the higher levels. Because of the lack of enthusiasm/participation, any development or “surprise” to the market can send the indices in the other direction, which happened earlier this morning.
Will the $DJIA close with an “outside down day?” Only the closing price will reveal the answer.