Monday, March 31, 2014

A pullback is almost definitely coming this week—Commentary

A pullback is almost definitely coming this week—Commentary: "An S&P 500 pullback to the 50-day moving average of 1834 is expected, while a move lower to the 200-day moving average is a possibility if earnings begin to really disappoint. This, I believe will be the extent of the repricing. I am not in the camp that thinks a 10-percent correction is in the cards. Ten percent from the highs would take us back to 1690. The only way the market would really start to break down is if geopolitical tensions heat up or the macro data weaken substantially.

To be clear, any increased tensions in Eastern Europe between Russia and its neighbors will cause global markets to go into "risk off" mode but I also would expect this to be temporary, providing yet another opportunity for the longer-term asset manager/investor."



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