June 25, 2019

Back-to-Back big declines

The Market:

WOW!  As we noted in Wednesday’s Nightcap, we expected volatility to continue and that there “seems to be a great deal of risk in the market”.  That is why we noted a move below Wednesday’s low of 2070 in the S&P 500 could trigger a sharp decline targeting 2000 in the S&P to start.  That is certainly NOT to say we expected the S&P to get there by Friday!

The S&P did not make the close easy going out right at the lows evoking the fear of a strong gap lower Monday.  While a gap down Monday could be a short-term buying opportunity as the index will likely be extremely oversold, it is a very risky trade which would need to be managed closely.  Additionally it appears to us that this decline is not finished and we will consider any move higher a relief rally which will ultimately give way to lower levels.

One last comment to think about.  If you are a long-term Bull or someone who missed a lot of the market’s rally by being too Bearish and have been hoping for a chance to get in, this may be that opportunity you were waiting for.  No, maybe not right here right now but you would want to have a plan in place, right?  Just some food for thought.

You can see the companies scheduled to report EPS in the Events Calendar but there are no noteworthy names.

Below is a the last look at this week’s reported Economic data.


Index & Sector performance 8/21/15


Economic Calendar week of 8/17/15


Analyst Comments:

Upgrades 8/21/15

Downgrades 8/21/15

Initiations 8/21/15

Price Target Changes 8/21/15

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