As this wild week comes to a close it is important to stay nimble and be ready to take action heading into next week. We could see anything from a strong bounce to a continued sell off. As I type this we are just below a pretty critical pivot point on the S&P 500, which would need to hold in order for us to see any bounce. The longer we go without at least a snap back rally the higher the probability that we do indeed head lower in the near term. Most people are looking around the 1905 level on the S&P, which is the 200-Day Moving Average. It is important to note that we have only spent more time above the 200 Day two other times in history. Yep, you heard it right.
Sectors are becoming heavily oversold, but that doesn't mean that they can't go lower. The stock market is designed to frustrate the maximum amount of people whenever it can.
Eric Marvin
Past performance is no guarantee of future results. Please always consult your financial advisor with questions pertaining to your specific situation.
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