The bulls couldn’t provide a follow through day higher yesterday, but the bears have certainly given us a follow through day lower today.
Most of the indexes are down about 1.0-1.5% at midday as China continues to unsettle the market’s nerves.
The S&P is currently trading below its 200 day moving average and it has temporarily broken that uptrend line. It will be interesting to see if the bulls have any interest in buying the dip as we progress throughout the afternoon.
Right now gold related items are working well and we have exposure there, so that’s a good thing.
I will keep you posted as we progress.