Thursday, October 16, 2014

Markets Sell-off 3% Intraday

I can't remember the last time since 2007 where the markets were down over 3% intraday. Whilst the market was down about 1% at close, the damage has been done on multiple fronts. The historical numbers during the rally from 2007 has been corrections no greater than 5-10%, and we are quickly approaching a 10% correction.
It's very possible we might have a breakdown without the relief rally people are trying to lighten their positions for.
Just looking at momentum stocks like LULU, AAPL, AMZN, NFLX, All breaking down after lingering near their tops
SP broke the upward trendline With the large number of investors looking at this line, I'd expect at least a continued selloff from this point.