Why the S&P Is Set to Sell Off: Iuorio
Wednesday's mild equity sell-off has created some concerns regarding the strength of the current rally.
It's important to keep one's perspective in the face of what could be a very healthy pull-back that creates buying opportunities at attractive prices.
If S&P futures trade below 1490, I will consider it a signal that the correction is on. The first downside objective would be 1472, where market should find some support.
Fundamental traders would probably blame a decline on Wednesday's disappointing GDP, but the reality is that the market had run too far, too fast, and rampant complacency had set in. On occasion the shrubs need to be trimmed, and people need to be reminded that equities can move in two directions.