SECOND DAY SELL OFF

Heavy selling again on Monday. Continued the correction after Friday in all US indices. Again the Nasdaq was leading in the weakness with -1.16%. In the last three days the index lost 4.6%, this is the biggest three day loss since 2011, which shows the broad selling momentum in the offensive sector.

• Dow 16,246 -167 -1.02% 
• Nasdaq 4,080 -48 -1.16% 
• S&P 5001,845 -20 -1.08%

In the big picture the financial sector is hugely underperforming, last year this sector was the leader in the rally and in 2014 this sector is the worst performer so far. The volatility is still high; just remember on Friday yo-yo moves. Our expectation that the choppy market is going to continue further because tonight starts the earnings season after the closing bell which will create more stress and fear to the investors. Today the season starts with Alcoa.

The European indices do not show yet real weaknesses and holding well their levels, especially the IBEX and MIB, the Italian index.

The BFM Assets Team.