The combination of the lingering Goldman news and quarterly earnings season now getting into full swing makes for rather high odds that more whippy price action and higher volatility is headed our way in the very near-term.
At the least, the Goldman news will lead to a bit of short-term price consolidation near current levels. At worst, swift, follow-through selling could quickly take the major indices back down to major, intermediate-term support of their 50-day moving averages.
The damage done by the SEC’s charges against Goldman Sachs is clearly shown on the chart for the exchange traded fund, IAI, which tracks the broker/dealers and investment banking sector.
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