Aftershock… Nothing like a gut check before a long weekend. Markets appeared to have steadied after yesterday’s Tech-led turbulence was explained away as end of summer profit taking / a clearing out of “frothiness,” and all 3 major indices opened in the green following a headline beat on August non-farm payrolls (more on that below). But a wake-up call as violent as yesterday’s isn’t easy to shrug off, and a similar “sell the winners” stampede has dragged stocks lower through the morning. Equities have attempted to steady themselves after the Nasdaq bounced off its 50-DMA and are off their lows heading into the afternoon, with cyclical/value sectors like Banks, Autos, and Cap Goods all in the green once again. Still it’s ugly out there once-sizzling Media/Software/Tech crew, which will keep a lid on any attempted S&P turnaround unless sentiment really shifts into the close. The word perspective is being thrown around to remind that despite the optically horrific charts, it’s too early to call this a true trend reversal (sorry Value), but still the weekend can’t come quickly enough….
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