Will The US Stock Market Decline Continue?

The Dow Jones has lost some 4% from its highest point since Friday going from 26700 to a low of 23500. Point wise we saw the worst decline in four years. Currently, the index seems to have recovered quite a bit to a current market price of 24737.

According to prominent money managers such as Carl Icahn and Paul Tudor Jones, the market is still majorly overvalued and the sell off could suddenly turn violent. With the rising job reports and low interest rates, the Fed may be forced to move aggressively and hike at least three times this year.

This prognosis caused fear and doubt in investors who caused the initial sell off on Friday immediately after the NFP and jobs report.

One thing is certain, with volatility picking up we could be in a field of dreams in 2018 with good opportunities in stocks, currencies and commodities (cryptocurrency as well.).

 Chart: US30, H4