The stock market finished Friday with a bang that sent the Dow Jones Industrial Average and the equal-weighted S&P 500 to record closing highs. It was a feel-good move going into the extended Labor Day weekend.<\/p>\n\n\n\n
Things don’t feel as good this morning, but that doesn’t mean they feel bad either. They simply feel as if the late burst of buying interest seen Friday is being unwound in recognition of it being a little too much for a market that had already made a big run.<\/p>\n\n\n\n
For instance, at Friday’s close the S&P 500 was up 10.3% from its August 5 low while the Nasdaq Composite was up 12.8%.<\/p>\n\n\n\n
Currently, the S&P 500 futures are down 28 points and are trading 0.6% below fair value, the Nasdaq 100 futures are down 132 points and are trading 0.7% below fair value, and the Dow Jones Industrial Average futures are down 205 points and are trading 0.5% below fair value.<\/p>\n\n\n\n
The negative disposition stems in part from some natural consolidation activity, which is being stirred by reminders that the month of September is the worst month, on average, for the stock market.<\/p>\n\n\n\n