The markets are dropping. A lot. More than people are comfortable with. Yet, are we in any real danger of a huge market correction? History says there are risk-off moves at or near highs. That applies to stocks and the markets. So why is everyone so concerned about a huge sell-off taking place? We have seen this type of risk move off before. The strong pullback of late last summer/fall is still fresh on people’s minds. I am not that concerned. Not yet anyway. The SPX is above the 50day SMA. We have yet to test this level, although I do think that will occur soon. Truthfully, I won’t be that concerned until we close below the 200-day SMA. That is about 100 points below where we are now in the S&P 500. Patience is key here. This is a news-driven risk-off move. In fact, this could become a blessing in disguise for a lot of investors that have missed the move up in a lot of the tech names. Only time will tell, but I am still bullish… for now.
Follow me on Twitter: @DiscipleOfTrend