The major averages continued to sell off as commodity prices took another hit yesterday.
Is this just taking some of the “froth” out of the market or are we due for a larger pullback?
We feel that a support bounce is the more likely scenario in the short term because the underlying fundamentals remain relatively stable.
For example, Friday’s labor report showed another 1.3 million jobs were added back to the economy. While that doesn’t make up for the losses earlier this year, that report shows there has been significant progress.