“Make no mistake, last week’s decline was not because of a hawkish Federal Reserve, but in spite of a dovish one…Bernanke indicated that the Fed will not stop adding to it until at least 2014…The fact that we are…seeing broad internal deterioration here is of some concern, because it smacks of something more afoot. It might be the increasing credit strains in China. It may be growing expectations for disappointing earnings preannouncements. It may be economic weakness that finally catches up to the general (though not uniform) deterioration that we’ve seen across leading measures of economic activity … But whatever the reason, investors appear to be shifting from risk-seeking to risk-aversion…
Monday, the S&P 500 was down 1.2% to 1573 (rounded).
The NTSM system sold at 1575 on 16 April. (This is just another reminder that I should follow the NTSM analysis and not act emotionally – I am under-performing my own system by about 2%!)