Yesterday, the S&P lost a key level of support and as a result a lower low has been established. It appears likely that this broad market index is now headed for its 200-day moving average.
There are cross currents in the markets that Clive Corcoran follows which are suggesting that today’s action during the North American session could be erratic and directionless.
While investors have recovered most of their ’08-’09 losses, the poor working stiff is still getting it in the chops. He doesn’t own stocks. He owns a house. And housing just keeps going down.
With the S&P 500 losing ground for five weeks now, Deron Wagner will be inclined to take profits quickly in the event of a sharp gap down/selloff on Monday.
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