TUESDAY SELL OFF

First atypical day, yesterday didn’t work the Tuesday magical rally effect. Tuesdays on YTD have been the strongest part of the week so far, but not anymore. US stocks ended reasonable lower and the financial and consumer-discretionary sectors were leading the decline. The volume was very little and indices closed closely at daily lows.

S&P500 — down 16.94, -0.9%, to 1.867. The index has been losing its ground in three of the last four sessions. The index is down -1.2% from the record close of 1.890.90 2nd of April.

DJIA — down 129.53, -0.8%, at 16.401. The big cap index also fell for three out of the last four days and is off -1.1% from the record high on 30th April. Only two stocks out of 30 were able to stay in positive territory.

Technically we start to buy again the SP500 if the price would be able to close above again the 1.885 key resistance level, so maybe we have to be patience for couple of days. This is the time of just watching and waiting; waiting for some good bargain opportunities and then react.

The BFM Assets Team.