We had a slight divergence between the S&P 500 and the Dow as they did not move in a correlated fashion Monday.
Today corrected that divergence and we were waiting to see if the Dow, which started this decline would lead the way up. Thus I was hoping that the Dow would close higher today than yesterday and it did so. Thus a bounce is likely.
But this bounce has yet to prove it will last more than a few days. The laundry kind usually loses its nice scent within a day. Is it just a bounce like the rest recently and last a couple of days then reverse quickly? Nonetheless, lets hope it moves the needle to the weekly and continues up.
Here are my current concerns for the next week to month.The Dow has broken the 20,000 level and not even Trump realizes what his health advisers are doing to the world economy no less the USA. Even Canada has closed the border with the exception of the USA and the press has instigated such a worldwide panic all to sell papers, the damage going forward is MONUMENTAL.
Right now we have the 1998 style liquidity crisis, but on a global scale, where hedge funds lose money and are unable to even liquidate some positions so they begin selling everything they can get their hands on. This will come into play with market direction as well.