Markets Are Under Pressure--Can We Hold December's Lows?

(1/6/22) Markets are pointing lower with the S&P looking to break the 50-DMA; the big question today is whether the selling is almost over. There remains a money flow sell signal, and markets are not entirely over-sold just yet. There is more downside risk to the market, and a retest of the lower range of standard deviations is certainly within the context of a pullback. Nothing major has occurred, other than going through a correctional process. Can we hold December's lows? If not, markets could slip to previously set lows in October. Markets are under pressure as they work off the overbought conditions coming out of the Santa Claus Rally. Small Caps continue to remain under pressure, and haven't had as much of a correction as the S&P. Mid-Caps are looking much the same as small caps--breaking some moving averages, and trying to test lower levels. Will the Generals and the S&P give up their gains which has been supporting much of the destruction in the lower-tiers of the markets. Cryptocurrency has become its own level of speculation in the market, demonstrating how much speculative appetite still exists. Bitcoin and Ethereum have both sold off from their previous highs. If there's going to be a speculative change in the market, I would expect to see it begin with a recovery in the cryptocurrency space.
- Hosted by RIA Advisors Chief Investment Strategist, Lance Roberts
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