The S&P 500 bounced in early trading but has begun a fresh dive to the lowest since May 23. The index is down 15 points to 1890 and has lost 6.4% since the peak on Sept 19.
The decline today breaks the 200-day moving average for the first time since 2012 and many of the uptrends that began in 2012/2013 have now broken. There isn’t any great support until the area around 1810.
S&P 500
You can blame a lot of things for the decline in stocks but for me it’s all about Europe. There’s about a 50/50 probability of another recession in the eurozone (have they even left the recession?) and there is no plan to fix all of the things that ail the continent.
Meanwhile, Merkel reiterated today that the government will not abandon its zero-deficit target so forget about anyone coming to the rescue.
