Third Friday in a row of risk aversion
Today's trading has a familiar ring to it.
It's the third Friday in a row of risk aversion. The sentiment is that anything could happen on the weekend and if disaster strikes -- like signs of an outbreak outside of China -- then you could be facing a gap lower on Monday.
It's a reasonable fear.
The problem is that results have been mixed. Two Monday's ago there was a gap lower in stock futures at the open while this Monday featured a reversal. Broader fears of coronavirus have also ebbed so that leaves market participants with a tough decision going into the weekly close, especially since today's selling hasn't been anywhere near the scope of the past two Friday's.
Do you buy this dip?
You have to also consider that stocks are just shy of all-time highs.
I'll be curious to see how the final hour of US equity trading goes, and in particular, if any buyers step up in the final 5 minutes.
