5 WHOLE DAYS? OMG THE WORLD IS COMING TO AN END

Not really, this is not a perfect storm or end of the world. Of course everybody expected some nicer year start for stocks, but the S&P 500 has dropped for five straight sessions. U.S. indexes have had their worst start to a year since the financial crisis year of 2008. U.S. stocks fell on Tuesday further and S&P 500 was marking its longest losing streak in more than a year. The S&P 500 is off more than 4% from its peak reached on Dec 29, 2014. That was the fifth-straight decline for the index, the most consecutive losses since December 2013.

The last 5 days data:

• Dow - 3.40% 
• Nasdaq - 3.86% 
• S&P 500 -3.72% 

Yesterday was another day of lows: stocks, oil, euro dollar, and low bond yields. German bund yields fell 15 percent to 0.44%. Investors are rotating into more defensive assets. There is a risk-off mood and appetite for fixed income assets because of the anxiety of investors.

Technically the Dow Jones index is in a falling knife mood and we have to be cautious and wait for bounce back and clear sign of break out or pivotal point. Below the 17.750 key resistance level we have to wait and do nothing. Without this break out it is only a guessing to open any new position since the market easily could fall further down.

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The BFM Assets Team.