Delusional

Today marks day nine of the decline that started the day of the Fed meeting. Even if we are headed a lot lower we are not likely to go down in a straight line. There should be bounces along the way. The day after expiration is typically weak and if we go down Monday we will be maximum oversold.

Existing Home Sales come out Tuesday morning at 10 AM. The expectations are for sales of 5.1 million homes at an annual rate. Those estimates are delusional and I expect a sharply lower number. I could envision a scenario where the release of those numbers take us lower and we end the day sharply higher as the market would be extremely oversold at that point and Turnaround Tuesday lives up to its name.

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