The S&P 500 fell 1.8% and closed just above its 50-day line. Meanwhile, the Nasdaq shed 2%. Both indices suffered their biggest losses since June 1.
The focus now seems to be on the Italian debt problem, evidently the new European debt flavor of the week. Additionally, the unresolved U.S. debt ceiling debate continues. My expectation is that these concerns will be resolved with some kind of short term fix before long.
While I will and have trimmed some positions, I believe this dip is not reason for great alarm; rather it could provide a buying opportunity. At the moment (Tuesday morning) the market has touched and bounced off the 50 day moving average. The market is still in a trading range. The S&P 500 extreme lower boundry is the 1295 level and is the likely to hold.
This blog post does not constitute an offer of investment advice. This blog is only provided for educational purposes. Please read the Important Blog Disclosure posted in the right channel bar.
No comments:
Post a Comment