I think the election added to the downward movement but it really was Dell that started it off.
Many say this much-needed digestion of gains is long overdue, as bull markets typically require a correction of more than 10 percent in order to allow the bull to maintain its upward tendencies.
You need to digest some of those gains in order to move higher.
Investors are going to look at whatever economic numbers come out and say is this additional fuel for the Fed to lower rates in March. Earnings are going to continue to come out and they're likely to be negative so you're going to have earnings weighing on the market.
While it is difficult to anticipate unanticipated events, investors could become increasingly concerned about oil, earnings and interest rates -- the trio of trepidation -- in the traditionally weak third quarter.
If they don't do it tomorrow, they will likely do it in January.
Basically the top ten industries were those that are economically sensitive and are bouncing back from their deeply oversold condition last year as a result of lower interest rates. We do believe the Fed will remain aggressive with its easing interest rate policy but we feel the earnings are going to be pretty bad for the first quarter, so the market is likely to tread water for awhile.
Possibly we could see a little bit of profit taking because investors had been anticipating that when the Fed does meet next week that they won't raise interest rates.
Not all tech stocks are cheap, ... The question is how far down can the Nasdaq go.
Copyright © 2024 Electric Goat Media. All Rights Reserved.