Words rarely spoken the past few years: “The market was due for a bounce back after some intense selling.” Modest selloffs Monday and Friday bookmarked 1%+ rallies Tue-Thu on the S&P 500. It’s not so much the rally during a selloff to examine as the action after the rally. So we should have a good amount of information at this time next week – bears have been so used to rallies just continuing straight up the past half decade plus so we’ll see if there is a change in nature. Aside from fixing some technical damage bulls would want to see a significant drop in volatility.
October once again struck as one of the trickiest months on the calendar for markets: The S&P 500 shed 6.9% for its biggest monthly decline since September 2011, while the NASDAQ dropped 9.2% in October for the biggest fall since November 2008.
(Far) across the pond, we mentioned the bullish “outside reversal” day a few weeks ago in the Chinese market – despite the selling in U.S. markets this reversal held up and the Chinese market looks like it has put in a short term bottom at least!Continue reading