Unlike last week in which the markets took off like a rocket, today we saw the exact opposite, disinterest and hardly a buyer insight. As a result the S&P 500 saw a 2% decline, while the NASDAQ fared a little better with only a 0.5% decline. Further selling at this point wouldn’t at all be the least bit surprising as the markets have been on a tear that hasn’t been seen in years. Just remember if we don’t manage to get the small and controlled sell-off now, then down the road we will see greater panic and fear in any sell-off that might occur. So consider a sell-off right now like pruning a tree so that its branches grow stronger and healthier in the future.
Another worrisome area that I believe could spell trouble is the fact that private industry wants to repay its loans to the government and the government won’t take back the money, which could create further peddling in private industry by big government and when ever the latter gets involved nothing good comes out of it – just more restrictions, oversight, and regulation, which only sucks the life out of free enterprise.
Here’s the NASDAQ and S&P Charts…
