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Published on Oct 4, 2016
The
S&P 500 initially tried to rally during the day on Tuesday but fell
rather significantly as we now look like the sellers are starting to
make a bit of a statement. With this being the case, it’s likely that
the market will continue to grind a bit lower, perhaps reaching down
towards the support level at the 2120 handle. This is the “floor” in
this market, and as a result it’s only a matter of time before we find
buyers in this market. The interest-rate situation of course is still
fairly negative, and as a result I do believe that we will continue to
see buyers given enough time. Ultimately, the knee-jerk reaction to the
Federal Reserve President of the Richmond branch during the day
suggesting that the interest-rate level in the United States is far too
low, and it could be as high as 1.5% at the moment. Ultimately, this
reaction is a short-term anomaly, and I believe that we will continue to
go higher.
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