Quick Comments on Morning Sell-off – Sep 28 2021

Quick comments

The market sell-off this morning is primarily about the debt ceiling fiasco and “dire” warnings on not paying your bills on time. The other problem again is the inability of the index to push beyond the 21 day moving average. Instead the index managed to recover to just below the 21 day moving average but as explained in each evenings stock market outlook, the 21 and 50 day moving average plus the Bollinger Bands kept warning the market had to push higher or risked a pullback.

The bullish sentiment remains in the market but I wish I had started my SPY ETF market direction repair today rather than yesterday, LOL. Today would be a better day for that repair to be put in place.

Aside from the morning drop in the markets while it may look precipitous the number of stocks on the NASDAQ making new 52 week lows is just 98 and on New York there are 110 new 52 week lows. Meanwhile New York still has 98 new 52 week highs this morning and the NASDAQ 52 new highs. Selling is predominantly negative of course, but volumes do not point to a huge decline coming. There are buyers still lurking and tip toeing through specific names this morning but most are waiting to see if stocks can fall further.





 

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