History Says Market Sell-Off Isn’t over and This Drop Will Be Sharper
Stocks could see another swoosh before the market is able to build on, or even hold, this week’s gains.
- The S&P 500 is about half way back from its October lows, but it could retest that level again before rallying into the end of the year, strategists say.
- Dow futures Wednesday morning pointed to a decline of about 100 points at the open.
- Earnings outlooks may not sound as rosy from some multinationals impacted by tariffs.
“This is the second decline of this year of 5 percent or more and two out of every time we had more than one decline in a year, the second decline was sharper than the first,” Stovall said. The S&P 500dipped to 2,710 last week, a 7.8 percent decline from its all-time high in late September. In February, the S&P was down nearly 12 percent at its low.
“There could be a test of the lows. I’m not surprised that tech, consumer discretionary are leading the way [higher] because they led the way downward,” said Stovall. He said if there is another flush out to lows, it could come before the Nov. 6 election.
World Stock Recovery Loses Steam as European Auto Sector Takes Beating
A recovery by global stocks proved short-lived as warnings over a slowing Europe…
#geometrics update
Lucas timing window pic.twitter.com/slXsjVazA0
— mcm-ct.com (@mcm_ct) October 17, 2018
Seller exhaustion at 2785.5 – a top 25 Percentile emotional selling event over last 20 years. This is a second sequential selling event and usually would be a high value signal. Should find support BUT BREAKDOWN a 2nd sequential seller exhaustion would be very negative#ticktools
— mcm-ct.com (@mcm_ct) October 17, 2018