Hello Everyone
Markets closed significantly lower on Sept-22, largely due to additional reports that the economy in China is slowing down. Lets take a look at some charts, the SP 500 Index itself and the “SPY” Exchange Traded Fund (ETF) which is a proxy for the SP 500 and often useful for volume analysis.
Evident via the charts is that the markets have closed down on above average trading volume days, and have had minimal “up days” on above average volume. They indeed had those types of days on August 26, 27, and 28, but volume waned quickly and dropped off. We are now approximately one-month since the late August sell-offs, and from my optic, the markets do not appear to be improving, and additional selling/distribution activity being observed is not conducive to an improvement of things. My opinion is additional downward action is possible, over the next 30-90 days, as large participants such as large mutual funds and hedge funds slowly exit positions.
I remain 100% G-Fund. Take care, I will plan on another update possibly in one to two weeks. Thank you for reading.
– Bill Pritchard
