Friends
Well, all the good work the bulls did early last week has all but been erased over the last few trading sessions, with today’s downturn being the most dramatic. You know the worries-rising interest rates, rising inflation, earnings and margins peaking, tariffs, China, political intrigue. Whatever the reason, the recent stand by the bulls is more and more appearing to be no more than a dead cat bounce. I mentioned last week that it wouldn’t be a surprise if we test the October lows. To establish a firmer foundation, retesting, and backing and filling, usually are necessary.
By the close, the Dow Jones Industrial Average was down 602 points to finish the day at 25,387. The S&P 500 was down 54 points to close at 2,726. Gold was down $6 to trade at $1,201 per ounce, while oil was down $1.25 to trade at $58.94 per barrel WTI.
Stocks like Amazon and Apple are dragging the markets lower as they enter bear market or near bear market territory. We’ve explained for some time how a handful of stocks helped drive the market averages higher. As the air is being left out of these stocks, the market averages are coming under enormous pressure. The bond market was closed today for Veteran’s Day, so all participants will be back at it tomorrow. Buckle up, it might get worse before it gets better, but as we always point out, these moves are temporary and part of the process. Stay tuned, we’ll get you through it.
Have a nice evening everyone.
