The last couple of trading sessions show us just how fast sentiment can change, especially in environments like we find ourselves in at the moment. Fueled by Fed speeches and a series of market pundits declaring that stocks seem particularly rich right now given the economic backdrop, stocks saw a second day of selling pressure so far this week. We’ve pointed out for weeks now that the rise in stock prices appears divorced from reality, but given the massive amounts of liquidity provided by the Federal Reserve it is a phenomenon that we have become accustomed to. Thus, the ebbs and flows of stock prices and sentiment are likely to continue.
For the day, the Dow Jones Industrial Average was down 516 points to close at 23,247. The S&P 500 was down 50 points to finish the day at 2,820. Gold was up $11 to trade at $1,718 per ounce, while oil was down $.40 to trade at $25.38 per barrel WTI.
So far stocks have scuffled some this week, but as mentioned above sentiment can change quickly these days. Just keep your seat belts buckled and your arms and legs inside the ride. Let’s see if the bears can keep the pressure on for the rest of the week, or will the bulls make a stand?
Have a nice evening everyone.