|SPY 10 min|
(UPDATE) SPY closed down 1.43%.
As you saw from the minute President Obama started tapping the Mic the market was offered all the way down to 1050. The market is reacting A La 2008 style to the president speaking, down down down. A lot of bulls had their balls tied up with rubber bands ready to buck when the paddock gate was opened. The rubber bands must not have been tight enough as the market is down 1% or about 100 points on the DOW.
When you see lower highs and lower lows consistently throughout a session it is a good rule of thumb to not stick your neck out into the playing field.
Volume has been light today, though read into the higher selling volume and the VIX spike this morning and its subsequent trading. VIX is currently up 8% on protection buying going into a historically dismal month of September. I will like to leave you with a quote with sums up what we should expect from companies and consumers in a slowdown environment.
You have to prepare for slower growth,” said Mark Tepper, managing partner at Strategic Wealth Partners. “As consumer spending goes down, businesses will experience lower earnings.”