I just saw this note from Briefing.com which is attempting to find a reason for today’s selling:
13:31 Floor Talk
None of the traders we’ve spoken to know why the major market indices sold off so sharply in the past half hour. One trader simply noted that the mkt was overbought, another is citing futures-related selling, and yet another even told us the sell-off is due to more trouble in the Ukraine (which seems highly unlikely to be a mkt catalyst, unless there was some kind of violence). In short, we’re still listening for a convincing explanation.
I’d tend to go with the overbought/profit-taking thesis, but who really cares (or knows) what the reason is? Clearly the market’s has been overbought for several days and people rarely need good reasons to sell. (Maybe it’s just people raising money to buy G.I. Joes with Kung-Fu grips.) The better question might be why don’t people want to buy right here. Anyway, I’m more concerned with identifying the next support level (2,117?) than finding the reason(s) for today’s selling.
Mike,
I agree, whats more important is where they are going not where they have been. I wonder if part of the equation is that equities have some sort of problem with the oil sell off, either it won’t last or its inflationary? Who knows, but I wouldn’t be surprised to see another lift in equities before the month ends.