The market suffered another Monday selloff on the first trading day of February that pushed the indexes past their December lows and near October levels as the bears continued their attack.
January’s frigid weather has had an effect on the economy, no doubt, as yesterday’s negative economic (and earnings) reports showed but just how much remains to be seen. Other headwinds surfacing include another debt-ceiling debate that could pick up speed by week’s end as the zombies start to throw jabs in preparation for what could be a big deal.
The currency debacles from around the world continue to make headlines and the U.S. officially has a new Fed Head. All of this added up to weigh on the indexes but the chart work we did over the weekend came up spades as we said there would be further weakness ahead. (continued…)