S&P 500 Trading Action Suggests Stocks Will Keep Falling
I was closely watching the trading action in the U.S. equity markets this morning following Monday's 1,000 point drop in the Dow.
Over the past year, any dip in the S&P 500 along the lines of a 3% pullback was quickly swallowed up by dip buyers who eventually drove the index back to all-time highs. I anticipated dip buyers to jump back in on Tuesday morning and, while we saw a small pop at the open, sellers quickly took control again.
The fact that stocks have faded rapidly on Tuesday morning indicates to me that there could be a lot more selling ahead. A fairly quick move back to 3100 on the S&P 500 seems well within the realm of possibility here.
In the video above, I talk about the early trading action in the S&P 500 and what it could mean moving forward.
If you liked this article/video, please click the LIKE button or share it on Twitter, Facebook, etc. using the buttons below.
Feel free to leave any comments, questions, or thoughts on the ideas presented here (and sign-up if you haven't already).
Follow me and receive periodic notifications when I post here by clicking the FOLLOW button at the top of the page!