A gap down at the opening that was quickly closed to the previous day’s close followed by a bit of flagging and another sudden leg up followed by more flagging into the close. Volume was dismal.

S&P 500 Index 5min Chart

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S&P 500 SPDRs 5min Chart

The market responded favourably to a surprising drop in crude oil stockpiles that might suggest an improving demand outlook.

S&P 500 Index Daily Chart

Flat opening and a slow uptrend. Volume was dismal.

S&P 500 Index 5min Chart

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S&P 500 SPDRs 5min Chart

Results at consumer giants Home Depot Inc (HD), Target Corp (TGT) and upscale department store operator Saks Inc (SKS) were helped by cost-cutting as revenue growth remained slack.

The earnings reports offset an unexpected drop in housing starts and permits in July.

S&P 500 Index Daily Chart

Huge gap down and tight range trading all day. Volume was well below average.

S&P 500 Index 5min Chart

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S&P 500 SPDRs 5min Chart

Japan’s gross domestic product showed its economy pulled out of recession in the second quarter, but at a slower pace than expected, prompting a sell-off in major Asian markets that spilled over into Europe and North America. In the U.S. Lowe’s Companies (LOW) gave a poor outlook and together with last week’s poor data on U.S. consumer sentiment and retail sales was all the ammunition needed to prompt the correction.

S&P 500 Index Daily Chart

S&P 500 Index 5min Chart

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S&P 500 SPDRs 5min Chart

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S&P 500 Index Daily Chart

S&P 500 Index 5min Chart

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S&P 500 SPDRs 5min Chart

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S&P 500 Index Daily Chart