This is exactly what’s going on with the Stock Markets these days. Markets are trying to get out of the rut and then suddenly Sellers jump right in the face as if saying “Peekaboo” and take it down! It is difficult to pinpoint the exact reason for this turbulence but Markets are trying to hold on to the 200DMA (S&P=2768) although not so convincingly. Next week is the most important week of the earnings season. Microsoft, Amazon, Google all reporting next week Based on the numbers (especially the guidance) We may bounce hard from here or we can sink and retest the 2710 level.
We can do guess work all day long on this sell-off but the fact of the matter is that S&P has catered down to just 4% gain YTD. Trade Wars, Rate jitters, European issues, Midterm elections….there is a lot going on and it will be interesting to see if we keep getting “Peekaboo” as Markets try to rally from here. Enjoy the ride!