August 23, 2015 The Week Ahead
August 23, 2015 The Week Ahead
The S&P 500 ended Friday’s action with a wicked sell-off, dropping more than 3% and over 5% the last two trading days.
A strategy that has worked well over the last couple of years has been to buy the dip. However, every rally on Friday was eventually sold.
What caused this?
Sellers were more aggressive than buyers. It might sound too simple, but there was no real news to justify the move. Of course, that won’t stop the financial press and media try to come up with a reason why.
In any event, global markets now look weak. With Europe, China, and the U.S. now showing signs of slowing down.
Just a week ago, the VIX was below 13, on Friday, it closed at 28.03!