By Investor’s Yak
All major indices (i.e. NASDAQ, S&P500, and Dow Jones) and most sectors have been busted down below both their 50 and 200 day moving averages (DMA). Sectors below the 200 DMA include; Semiconductors, Technologies, Transportation, Retail, Consumer, Financials, Energy, and Metals. Even Healthcare and Biotechnologies have failed. The only sectors above are Home Builders and the weaker Utilities.
The long waited for correction appears to have begun. How long the markets will remain down is unknown. If the FED does not interfere, a correction frequently results in major indices having short lived rallies followed by further price drops. This could be a good time to stay in cash.
Be ready and prepare for the next rally, start your own review list of stocks. Watch them weekly and eliminate the stocks that fail to remain strong. Sometimes the market will have an end of year rally which could start late September, October, or November.
Event calendar affecting markets this month
28-31 August – End of month window dressing will most likely fail to produce satisfactory new highs.
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