Rough day in the markets yesterday. But as we’ve been saying, the volatility is here to stay for a while as the markets carve out a new base.
But this pullback is transitory in my opinion, and I think we’re getting close to the end of this correction (if we haven’t already seen it).
I have support for the Dow at 23,500, which is only another 1.53% below yesterday’s close. And I have support for the S&P at 2,550, which is only another 1.22% below yesterday’s close.
The media will over-sensationalize the recent pullback. Don’t listen. This is normal market behavior after a spectacular, correction-free run-up over the last two years. This is healthy. I know it feels terrible. All corrections do. But I believe this is just that – a correction in a historic bull market with lots more upside to go. And not the beginning of the end.
The underlying economic fundamentals are strong and only getting better. The interest rate hysteria is wildly premature. And there’s nothing on the horizon to keep this market from continuing its uptrend.
Just have to patiently endure this correction. Part of trading and investing.
In other news, Weekly Jobless Claims fell more than expected, declining by -9,000 to 221,000.
And Chain Store sales showed retailers are “reporting accelerating rates”.
Once again, more good news on the economy.
Will be interesting to see what the market does today. But if it’s down, don’t despair. Corrections are normal. And healthy. And when it does go back up, we will have a new base underpinning the next leg higher.