• Friday 06/24/2016 selloff – showed that 90% of all NYSE issues listed sold off – technical indicators expect that this will continue (Lowry Research)
• DOW YTD down -.14%; S&P YTD down -.32%; NASDAQ YTD down – 5.98%
• 95.72% increase in NYSE selling and 121.64% selling in NASDAQ – largest one day increase in selling since 2/2/16 (CNN Money)
• Reducing/eliminating small cap exposure
• Eliminating European exposure
• Supply trends are higher – resulting in more selling likely
• All large financial institutions are down 6%+ (CNBC)
• British pound at 30 year lows – will probably go lower
• Oil down over 5% today; YTD up 13.61%; trailing 1 year down -24.25%
• US 10 year treasury at 1.56%, German bund 10 year at negative .03% (down 84% YTD)
• Strengthening of US dollar will create margin pressure on US companies with European exposure
• Other European Union (EU) countries may feel the pressure to have a referendum, at least the talk of it will create uncertainty and downward market pressure
• New home sales down 6% and existing home sales up 1.8% 6/23/16 (CNBC)
• US will still be the best house in a bad global neighborhood as the dollar continues to strengthen (CNBC)
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. The economic forecasts set forth in may not develop as predicted.
The Standard & Poor’s 500 Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.
The Dow Jones Industrial Average, commonly known as the "DOW", is comprised of 30 stocks that are major factors in their industries and widely held by individuals and institutional investors.
The NASDAQ Composite Index measures all NASDAQ domestic and non-U.S. based common stocks listed on The NASDAQ Stock Market. The market value, the last sale price multiplied by total shares outstanding, is calculated throughout the trading day, and is related to the total value of the Index.