The US stock market suffered serious losses
The us stock market in the beginning of the week has seriously declined. The DJIA sank by 1.5%, S&P500 fell a little more futures on the S&P500 in pre-market today is drifting in the negative zone.
The fundamental reason for the decline is, but most of it is far-fetched: the market is afraid of complications in the trade war between the US and China and fears that the economic crisis linger on. Yesterday’s sale was led by shares in the IT-sector, where producers are nervous about reasoning about the likelihood of a decrease in sales – again, amid expectations that the trade confrontation between the States and Beijing will be long and painful.
But if you look at the structure of the trades, it is well seen, as it formed a struggle between mutual funds investments (Murtual Fund) and major institutional investors. First, guided by minor external background, their own fears and weak statistics on business activity index, NAHB, stimulate sales, which during the session smoothly, but without enthusiasm are redeemed. The second market in the late afternoon and realize its strategic goals – market crashes without the possibility to buy off these sales.
From the October high of 2939,86 points, the S&P500 index fell by 9.2%. However, in the last three weeks – at least it is drawn on the daily chart, sellers are driven in a side corridor. Given the volume of daily fluctuations and the extent of upcoming events, we can assume that while it’s not a turn down. S&P500 could turn back (the price is low, it may attract a large volume of speculative-minded buyers) and try to test again the peak of the October order in early 2019 to be buried under an avalanche of sales.
In addition, historical experience shows that in the fourth quarter – at Christmas, new year etc, American market more often increases than decreases.