Is the Middle East Conflict Already Beginning to Spread?
- The decline in the stock market yesterday took the S&P 500 and the NDX Nasdaq 100 below their key support levels. It will take an immediate, sharp, and sustained bounce to prevent us from declaring that an important change in trend has taken place.
- With the U.S. military attacking two facilities in Syria that they say are linked to Iran…in response to attacks on American troops in the Middle East, it won’t take much more to think that this situation is already becoming a regional conflict. If this does indeed become the case, the downside potential for the stock market will almost certainly grow.
- The stock market is getting oversold, but it has taken an even more oversold condition many times in the past to create a bounce in the stock market.