There is a sea of red across global markets today and it looks like the correction may be 5% or more. Futures are signalling an open of around 4350. There is really no explanation for this drop other than elevated levels and complacency in the markets. We never know when this happens but it is a very normal process that the market goes through every so often. This drop was well overdue and in the end, it will create nice opportunities to buy at lower levels. All we can do now is watch and wait and take profits if you are short. I don’t think that this move down has much more to go since there is a lot of money on the sidelines wafting to go to work. We have a Fed meeting on Wednesday, which will be interesting since there are expectations for tapering to begin but I would be surprised if that announcement comes this week.
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