Last week the SPX officially crossed into correction territory. For those of you unclear what that means, it was a full 10% drop from the high-water mark set at the beginning of October. This also send the major indexes into negative territory for their year-to-date return figures. So it’s been a rough month.
Is there an end in sight? Maybe. But it’s always tricky catching a falling knife.
Currently, futures are pointing to a higher open this week. But frankly, there’s little reason for markets to move significantly higher at this point given this week is election week. Now next week on the other hand?
At this point there are no well defined support or resistance numbers, as the markets do not seem to be playing by technical levels at this point. A different set of trading algo’s seems to be driving the day – that of underlying moving averages. And there are lots of individual positions out there we negative moving price averages.
Post-election is an appropriate time to take stock of where we’re at and whether or not there’s much chance to salvage 2018. For the time being, expect continued volatility.
On the plus side, at least the futures are indicating a higher open for today. The question is, will this be another dead-cat bounce, or the beginning of a bottom to this market? We shall see…
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