MARKET GOES UP LIKE AN ESCALATOR AND GOES DOWN LIKE AN ELEVATOR

Yesterday was a great example of that old rule. Right after the opening the SP500 briefly touched an intraday record at 1,966 then escalated the sell-off in the late session and was falling further the indices most points in more than a month. The Dow suffered a triple-digit decline. The correction started at Italy vs. Uruguay match, so the traders were more interested to sell than watch the game.

Is it only a profit taking at the end of the quarter? Nobody knows. But for sure, yesterday was there was a severe correction. But on the other hand that might bring a great opportunity for a bargain hunting in July.

• Dow -0.70% 
• Nasdaq - 0.43% 
• S&P 500 - 0.64% 

And at the same time the VIX gained with double digit as we anticipated couple of days ago here at this blog.

• VIX 12.13, +1.15, +10.47%

Is this correction a drama? No, this is part of this business and I heard that the sun will still come up tomorrow again. The resistance on DJIA is still at 16,945, until that level don’t do anything just wait and watch like a great elk hunter.

The BFM Assets Team.