On Friday, the technical break to the downside, below 1972, was worrisome. The next resistance level is 1925. Today the markets are significantly trading down because of weak global commodity news. There is no real major US economic news that warrants the predicted US selloff other than trading down in sympathy. As usual, markets overreact. The markets are not expensive nor are they cheap. As we mentioned on August 24th, the markets were a good entry point based on 2016 earnings. Again, we think if the markets really get hurt from here, this would be a another good entry point. The lesson is: be patient, be prudent and do not pay too much attention to the talking heads.
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