For the week starting January 11, 2016: We just finished the worst ever 5 day year opening in Wall-Street’s history. The S&P 500 finished down 5.9%. Last week I anticipated a red opening for 2016, but I was really surprised to see how bad it looked. The trigger was the Chinese market crash, however, the real reason is the 6 year long rally which just cried for a pull-back. What’s next? Fear dominates the market. The market is in “over-sold” territory, but the downside momentum is still too strong to be stopped. We are moving into the quarterly reports season with low expectations. Analysts are estimating a drop of 4.2% in company profits, so this probably won’t save the market too.
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