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About a week ago, I became bearish on the Stock Market and the sell-off continues, I think there is still some more downside to come.
Let's take a look at the S&P 500, the latest uptrend that started at the beginning of the year is now broken, we are seeing more downside pressure and that will continue for some time still. I think it could go down to about 2650 for starters, then a slight rebound up and then the selling continues later this year.
The Volatility Index has risen recently, I bought it last week and will continue to hold for another week or so. Next week, we can still see some choppy price action which may lead to a rise in the Volatility of the markets, this could lead to the TVXI chart below going higher, I am looking for about $7.80 to $9.90 as a target next week.
This could be the start of a bigger selloff of in the overall markets, if so this will continue for the remainder of 2018 and possibly into 2019. You may want to consider reducing your exposure to the markets, creating a hedge or even going short.
Vin Maru, Editor at www.investinmj.com
