Loading ...The market internals are only pointing slightly down, but the momentum seemed to have definitely changed. VIX is up 2.5% this morning, the dollar is gaining strength and rates are slightly higher. A durable goods order was -2.5% this morning, way worst than expected. If we finish lower today with increasing momentum, it would definitely be looking for a 5 to 15% correction on the stock market.
The USD is already for a rebound and hopefully gains some strength against the other currencies. This means that as the dollar strengthens, we will most likely see oil, gold, silver and the market down. This is just another reason to be short term bearish on the market.
Germany’s consumer price index fell. This is the first time it has happened in 22 years. Evidence that there is headwind for an economic recovery in Europe is present and abundant. Its truly amazing to think that about how low rates are worldwide, there has never been a period of time like this before in modern history.
Something is different about the market this morning…that’s for sure
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