Six correction day...

in row in S&P500. Which is the longest decline this year. Last time happened at Fiscal Cliff paranoia in December. Last week on Wednesday was euphory in the market, when FED surprised most of the investors that no tapering. The market always does, which is the most unexpected. That six losing day was good to shake the longsiders out. The market always does what is causing the most pain. In the last couple of days the falling market could produce the bigger pain.

Some data from yesterday:

Dow Jones -0.40% lost 61.33 points, at 15,273

SP500 -0.27% closing down 4.65 points at 1,692

Nasdaq -0.19% lost 7.16 points, to 3,761

I am fine with these corrections. I do believe this is normal phase of the market, so far gained nearly the US markets 19% so it was a best time to do some bigger and longer correction before go to new high again. The volatility indicates me some movement has started under the surface and this week will see some big moves.

Technically if the bulls come back and occur the upside move our first key resistance is at 15.475 in Dow.

J. C. Penney:

The mid range department store company is just suffering. The share declined again yesterday- 0.10% and fell to 13 years low and leading the SP500 losses with a 15% drop. The projected sales would improve at a slower-than-anticipated pace and raised questions about the retailer's liquidity. This is the typical template of falling knife. But I am sure many-many investors still holding the shares and hoping and getting more and more frustrated day by day when looking at the price, which is in free falling mood.

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Have a great day!

The BFM Assets Team