The CNBC on market volatility

The near end of summer seems to be a troublesome time for traders. Increased volatility is due to mid-term elections and the pullbacks especially in this time of the year, the Fed meeting in September and whether we’re in for another hike.  You can hear more about the expected sell-off on CNBC.

 

    Jeff Parent Market Outlook

The market is focusing on the volatile results of a small number of tech basked companies and overlooking the great returns of many strong companies in the broader market.  However, the US market looks like it is forming a double top, which is a bit worrisome as traders could see this as a time to take profit.  A natural drop of 80 points on the S&P500 would not surprise him and a failure to continue to make a new high would only confirm a potential larger sell off.

The advice is to have diversification, and not concentrate only on the results of specific tech companies. Still there may be a soon end of this bull market.