Stock Market Update

[BRIEFING.COM] There is a weight on the market, and it is being applied by the market's largest stocks and its high-energy stocks. The lack of upside momentum in these names, after recent losses, has left some market participants reluctant to embrace a buy-the-dip trade.

The preliminary University of Michigan Consumer Sentiment Index at the top of the hour didn't necessarily help matters in that regard. It checked in at 50.3 (Briefing.com consensus: 54.0) versus the final reading of 53.6 for October. In the same period a year ago, the index stood at 71.8.

The key takeaway from the report is that the decline in sentiment was widespread across the population, with one notable exception: consumers within the largest tercile of stock holdings.

If there was a saving grace in that report, it was in the recognition that long-term inflation expectations fell to 3.6% from 3.9% in October. Those aren't low inflation expectations, but directionally they qualify as good news.

The real basis for the improvement in the market from the opening lows, however, is technical in nature. The S&P 500 briefly dipped below its 50-day moving average (6669.00), but in an encouraging sign soon found some buyer support, just as it always has since the April lows.