Correction Underway

It appears as if a correction is indeed underway. I expect the first stop to be 1040-1060 on the S&P 500. While I am short the SPY, my pharmaceutical longs have massively underperformed today. I was expecting some sort of give back as pharmaceuticals have been outperforming for a while, but the magnitude has caught me by surprise. Have a good night.

1 comment:

MarketCynic said...

The market emphatically rejected the 1100 level on the SPX and we saw a brutal reversal, blamed on Dick Bove's downgrade of WFC. It was coming anyway, the market was diverging and weakening regardless of the news, good or bad.
Looks to me like we will be in a period of consolidation for a few weeks, today was a statement day made by the equity bears, despite the weak dollar and roaring commodities. The easy trade now is the short side.