The opening bell rang after this market had its best day in a long while closing up +669 points yesterday. Once we opened, this market seemed to be continuing its momentum.
Around noon EST, we issued adjustments to subscribers stating that we were placing hedges on stock and we were speculative of this market’s price action, even though at that time we were still in the green +200 Dow points.
As the afternoon progressed, we were flirting between up, unchanged and slightly down on the day. Before long, we were heading lower and there was no stopping the strength in selling. We plunged as low as -450 Dow points and closed down -345 Dow points. We are, as the talking heads on TV like to say, “in correction territory!”
Having no end-of-day follow-through from Monday’s big bounce, it looks like we may head lower before the bulls regain strength, as supports levels seem to be breaking – we could see Dow 22,500 before we get back to 25,000.