HOLY CRAP! WHAT A DAY IN RUSSELL AND DOW.

US market had its worst day in five weeks yesterday. I am just wondering why everyone is talking about the bullish Tuesdays why the subject is not the bearish Thursdays, because regarding my statistics Thursdays have been the worst days YTD in 2014.

After two days of 1.900 points SP500’s new historical high, stocks are substantially down after yesterday serious sell off. Dow made its worst decline since end of this February. Russell 2000 is suffering by more than 10% drop by now and staying at the same level as six month back and dropped 1,9% intraday Thursday. The small cap index massively underperform the SP500 and DJIA.

Thursday data:

• S&P 500 closes down 0.9%
• Dow falls 1% - triple digit loss about 166 points
• Nasdaq ends down 0.8%

Pops up the usual question buy this 10% drop in Russell 2000 or expecting more drop? For me personally it is good enough level as a bargain hunter to own Russell 2000 index. Might go down further, but the risk and reward ratio recently is much better now than used to be couple of weeks ago.

In Dow there is still the resistance level at 16.700 as we stated yesterday. Only if the market will be able to close over this level would mean bullish break out. Till that time we buy the dips and waiting to bounce back.

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The BFM Assets Team.