Today the S&P 500 gapped down, but then recovered to close at an intraday high, showing that bargain hunters are still active. So is the selloff over? I don’t think so. I’m anticipating more down days as a second wave of COVID crests ahead of the November presidential election drama.
The downturn will likely continue until a second round of stimulus is passed and progress on a vaccine is affirmed. That could mean heavy volatility and selling extending into October. Also, if this is a rotation out of overbought Tech stocks and into Value, then the NASDAQ still has further to decline.
For now, I’m remaining patient and not buying this dip.
You can listen to my latest thoughts in a podcast episode posted this weekend: https://www.wealthsteading.com/319
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