While investors could ignore much of the “goings-on” in Washington over the past couple of weeks, they couldn’t ignore the turmoil that engulfed the Presidency on Tuesday night and into Wednesday. Nervousness breeds more nervousness and on Wednesday investors were very nervous. Investors who have held off selling and continued to focus on stocks perhaps moving higher thanks to President Trump’s tax reform plans, decided it was time to take profits from the present rally.The drop on Wednesday, while more emotional than fundamental in nature, was also a result of the market’s inability to push beyond 2400.
Investors are tiring of the sideways action of the market with no clear signs that it can continue to advance beyond 2400.Wednesday’s nervousness among investors was the excuse many needed to take profits.We should see a bounce attempt looking at these numbers, but the chance the bounce will hold is slim. Any bounce if it occurs on Thursday, will not hold and the market will move lower into the end of the day.However a bounce on Friday has a better chance of closing even modestly higher.
Overall Outlook For Thu May 18 2017
A bounce is possible but will not hold in either index. A bounce will open the chance to buy Spy Put options for May 26 expiry or a handful of SDOW and SQQQ shares for a bit more downside.This is not the start of a bear market, but it could lead to a correction of 3% to as much as 5%. Just my 2 cents!!!!
Month Of May: May tends to see many market highs and then the start of a correction. That may well end up being the case again this year as it looks like the S&P and NASDAQ as setting up for a correction.
Not A Recession: But remember, we have seen these types of days before and in the end, the market recovered quickly and then moved higher.
__________________________________________________ _______________________________
bây giờ xin mời mọi người ăn bánh điểm tâm từ bếp dulan còn nóng hổi... Cám ơn du lan nhé!!!!
http://i.imgur.com/Yk252l7.jpg?2
