As you know, the bounce I was anticipating today didn’t materialize. Rather, both the S&P 500 and Dow opened significantly lower, as both indices look to retest their recent lows.
Dear Sheryl,
As you know, the bounce I was anticipating today didn't materialize. Rather, both the S&P 500 and Dow opened significantly lower, as both indices look to retest their recent lows. But there is good news... The smart money is using today's selloff as a buying opportunity. In fact, the Nasdaq isn't as weak as the S&P 500 and Dow, and many flagship Nasdaq stocks are firming up. I should also add that Treasury yields are continuing to plunge. The 10-year Treasury fell to around 2.85% today. And as along as Treasury yields continue to fall, the Federal Reserve is more and more likely to issue a very dovish statement at is Federal Open Market Committee (FOMC) meeting this month. So, I'm still expecting a strong market rally in the upcoming days and weeks-and the folks at Bespoke agree. According to a recent report, the S&P 500 has historically bounced strongly following two-day selloffs like what we experienced this week. In fact, Bespoke notes that when the S&P 500 is down more than 3% one day and declines more than 1% at the open the following day, the S&P 500 is 2.82% higher one week later. You can listen to today's Special Market Podcast by clicking here. If you encounter any technical issues with playing the recording, please contact my customer service team, and they'd be happy to get you squared away. Sincerely, Louis Navellier
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