By: Scott Redler
Today’s action will certainly increase volatility moving forward. After Friday’s nice bounce, we saw no follow-through into the new trading week. Early on, the materials tried to take the markets higher, but weakness in the financials ultimately caught up with the rest of the market. Today’s action tells me that we will get a test of Friday’s reactionary low of 1,044 on the S&P within the next few sessions. No matter which way you slice it, this action indicates that a move to 1,025-1,035 on the S&P is inevitable.
