Major averages fell Friday on higher volume. The S&P 500 broke below a major support point around the 2044 level, and the NASDAQ Composite once again broke below its 200-day moving average.
On Friday, another Fed governor said the time for a rate hike is "quickly approaching". The market seems to be taking issue with this, though historically, markets often correct prior to the first rate hike, then rally after the first rate hike which is considered a bullish event due to a recovering economy. However, this time may be different as economies around the world continue to atrophy.
Futures are slightly lower this morning in pre-open trade after dropping sharply yesterday evening. The markets' muted reaction to the recent Paris and Beirut attacks places the events as unfortunate social upheavals in a long string of such events. With each passing day, the planet grows closer to a significant sociopolitical tipping point. Regardless of how the future unfolds, always keep a close eye on price/volume of stocks and leading indices. Technicals always leave clues shortly before huge declines allowing for safe harbor before the storm.
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