Tuesday, August 18, 2009

Healthy Consolidation?

Monday's market action around the globe was decidedly to the downside. For the most part though, this pullback in the markets is likely healthy. The unknown is how far down will the markets decline. The Asian markets opened mixed this Tuesday morning, but not the steep downside seen on Monday.

Before Monday, the S&P 500 Index had climbed over 50% off the March low. The decline Monday occurred on fairly light volume and a little consolidation should be expected given the strength of this recent advance.

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