Every correction starts as a dip. But not every dip turns into a correction. This is worth noting with the S&P 500 (SPY) off by 4% from its highs, and the Vix up by more than 30% at today’s lows. More importantly, how do we know if the dip should be bought or if it going to morph into something worse? This will be the major focus of today’s commentary. I will also provide updates on the coronavirus situation and how it could impact our portfolio. Read on below to find out more….(Please enjoy this updated version of my weekly commentary published September 20, 2021 from the POWR Growth newsletter).
First, let’s do our regular look at what’s transpired in the S&P 500 for the last week:
For much of last week, the S&P 500 traded in a tight range between 4440 and 4480. It broke this range to the downside on Friday, and this negative momentum continued as the S&P 500 was down by more than 3% at its lows of the day before an end-of-day rally, cut these losses nearly in half.
