What a week in the world of volatility! The intraday moves in the Dow coming in as high as 600 points over the past several days. Yesterday, there were some signs of capitulation as major selling took over from the open. Certain sectors such as energy actually staged a late day comeback and is seeing some follow throw at the moment. One thing that I took from yesterday is that the Russell 2000 held up quite well considering the move in the S&P 500. During this pullback we have seen the small caps lead us to the downside, so it is important to take notice that they appear to be bottoming before the S&P 500. If we can get a sustained bounce in energy we may be able to see a retest of around 1905 on the S&P, which would be at or around the 200 Day moving average. What we would do from here might determine the short term direction of the market. However, we may not even come close to getting back to this level assuming this is a head fake.
Eric Marvin
Past Performance is no guarantee of future results. Please consult with your own financial advisor before embarking on any investment plan.
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