Equity sell-off pauses for breath, direction still down


The global sell-off in equities appear to have paused a little today, but it isn’t really looking for a new direction. The trend remains down, and the market will consolidate and see a bit of profit-taking before that happens. The market is looking a little over-extended at these levels, but this pause is nothing more than a bull trap. Unless some significant new factor comes into play, further exploration of the downside is inevitable. It is notable that even companies reporting positive results are getting dragged down with the rest, suggesting that all the good news is already priced in, or perhaps even over-priced. Fund managers and other professional investors will be watching closely for further declines in anticipation of picking up some bargains, but they will also be wary of rushing in too soon. We feel that sentiment is now more nervous than actually negative, but it doesn’t take all that much to trigger market moves when people are fearful.

Share this news

Related posts

Economic 2019-07-31_FOMC.png

Countdown to FOMC on 31st of July


Market expects 0.25% rate cut on 31st of July 2019

Read more
Calendar Calendar.jpg (1)

The week ahead 15.07.2019


Upcoming releases next week

Read more
Stock Market US stock-exchange.jpg

Stock market rally


Stock market rally after Powell transcript

Read more
Forex News yen.jpg

Dollar Yen breaks lower


Dollar Yen breaks lower

Read more