Sam Stovall chief investment strategist for Standard & Poor's Equity Research Services was on CNBC this afternoon and he said he thought the correction would be a 7-11 correction. In other words, it would be in the range of 7 to 11 % down.
At the close today we were down 3.5%. He said that the fact that the market is only down 3.5% after all the bad news is an indication that we are not seeing a major reversal. He believes we have more upside ahead after we get past this choppy period.
I agree with that view, but of course, we’ll have to see how the correction plays out.
Volume was light today, but not low enough to put an end to the current downtrend.
NTMS dropped to a SELL today after HOLD yesterday.
