Dow’s down nearly 500 points as I type. The session this morning has been all over the place. At one point the Dow was up high double digits, then meandered its way lower, accelerating the minute Britain’s Teresa May began addressing parliament on her latest Brexit maneuvers.
Clearly, traders are in technical mode: I.e., selling as previous support levels get breached. If you’ve been with me on the videos, you know that for the past several weeks I’ve pointed to the possibility that the October low may not hold; it’s not this morning (I’ll update you later tonight).
While times like these (times when the price action dramatically defies the fundamentals) are not fun for folks who track their accounts daily, as I illustrated in this week’s message, they’re not all that unusual in the historic scheme of things.
On Bloomberg this morning, popular Citigroup strategist Tobias Levkovich targeted a 2,800 year-end S&P 500. Now that’s quite a ways higher from here (although it was there like 2 weeks ago), and while I’ve seen stranger things happen, I think it virtually demands something concretely positive-sounding from both sides in the U.S./China trade mess.
Be back tonight with a recap…
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