Major averages fell yesterday on higher, above average volume. The high volume reversal on the S&P 500 suggests the possibility of short-term weakness ahead. Meanwhile, the NASDAQ Composite rolled over to the downside on heavy selling volume, while the Russell 2000 has now posted three straight down days off of its peak of this past Friday. With interest rates headed higher, the QE-cushion which provided shallow corrections for the major averages may be over. That said, it still remains to be seen whether the market manipulations start to significantly slow.
Only recently, the July - October months were the shallowest in the history of the S&P 500 with odd manipulations occurring on September 9 as we wrote here: https://www.virtueofselfishinvesting.com/faqs/answer/these-markets-are-becoming-increasingly-irregular-in-the-way-they-trade-please-comment. The markets, however, have taken on a different tone, at least for now, since the US presidential election.
Oil jumped nearly 9%, and is up another 4%, on a deal out of OPEC to cut output by 1.2 million barrels a day to 32.5 million barrels, its first production cut in 8 years.
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