Inflation fears are squeezing the markets. (listen to: https://www.wealthsteading.com/257 )
The S&P500 is down over 6% in the past two trading sessions. It has broken hard below its 50 day moving average (dma) and sits just above the 100dma. If the 100dma is breached, the next level of support will be at the 200dma, 4.5% below today’s close.
I have no idea where this correction will bottom; however, I see it as more of a buying opportunity than a time to panic. Corporate profits remain strong and key market indicators are settling in: copper was down Friday but up today; interest rates were up Friday but down today. The VIX has likely spiked.
While most market indexes broke below their 50dma, Emerging Markets (VWO) has found support at its 50dma. Over the long term, I remain bullish on International Markets and thus today added to my positions in VWO and VEU.
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