Stocks Selloff. What Will Be The Impact Of Earnings Releases

As I have discussed in the Briefings for the last several days, the Market internals have been very weak both to the upside and downside. While this is very unusual, it may be the Fed announcement and later comments by the Fed Chair, may have changed the determination of value. What will be important tomorrow if there is more downside work to do, will be Market Breadth. The Indices closed at the low of the day, suggesting there should be follow-through tomorrow. However, if the internals are stronger than at the close today, it will suggest a rotation back up. There have been many times when the Indices made a big move after a Fed announcement, only to see it completely retraced the next day. On the other hand, if there are lower prices tomorrow and the internals are weaker than the close today, expect possible acceleration to the downside.

Leave a Reply

Your email address will not be published. Required fields are marked *