[su_heading style=”modern-2-dark” size=”20″] Market Update [/su_heading]
The market continues to “pause” and “digest” late August’s steep sell-off. So far this is “normal” action after a big move and we have to expect the market to move sideways until the S&P 500 closes above near term resistance (1993) or below near term support (1867). Until then, by definition, we expect this sideways action to continue. Stepping back, the market is weak and the fact that it can’t bounce from deeply oversold levels leads us to believe it wants to move lower from here. Of course, the giant elephant in the room is the Fed. They are scheduled to meet next week (9/17) and hold a press conference which is always fun. We don’t believe they will raise rates but with this Fed, anything is possible.
To be clear, the market is in correction territory and has formed a new downtrend. But if we turn higher (enter any positive headline the market wants to focus on) -we can easily move higher from here. Here is the “bullish” case for stocks to rally:
[su_heading style=”modern-2-dark” size=”20″] FLS Portfolio [/su_heading]
[su_heading style=”modern-1-dark” size=”18″] Positions & Working Orders [/su_heading]
- The FLS Portfolio is 100% in cash and there are no new working orders
