I do not believe that we are at the beginning a Bear market. I believe this is a long overdo correction, a pause to refresh at most.
The Internet and FAANG-related stocks were very fully valued based on analysts projections of earnings in Y 2021 or even Y 2022. So this correction is not unexpected. It is a pullback from the strong recovery market.
Things got expensive, they ran up, they got very concentrated and people got exuberant. People loaded up on 1 side, it does not take much of a bump to knock some apples off the cart.
Tech pushed indexes lower by of 4.59%, the 3rd straight declineer and worst 3-day performance for the sector since mid-March. Even with the recent drop, the sector is still the best performer YTD.
Tuesday, the major US stock market indexes finished at: DJIA -632.42 at 27490.89, NAS Comp -465.44 at 10847.70, S&P 500 -95.12 at 3331.84
Volume: Trade on the NYSE came in at 1-B/shares exchanged
HeffX-LTN’s overall technical outlook for the major US stock market indexes is Bullish with a Very Bullish bias.
- NAS Comp+20.9% YTD
- S&P 500 +3.1% YTD
- DJIA -3.6% YTD
- Russell 2000 -9.8% YTD
Looking Ahead: Investors will receive the weekly MBA Mortgage Applications Index and the JOLTS – Job Openings report for July Wednesday.
Have a healthy day, Keep the Faith!