The equity markets continue to work off the bender they imbibed themselves with after last weeks Fed meeting.
We still prefer running with the bulls towards the 95′ comparatives year end target of ~1800, but will be keeping a very close eye on the financials. Last week we mentioned we were looking for the banks to climb in the sector performance standings and they have fallen even further behind.
Considering autumn is upon us, we had to fulfill our contractual agreement of including at least one crash scenario. In all likelihood, the BKX will find support where it currently traded down to this morning ~ 62 and continue on its merry way. Should it loose that support over the short-term, a more material correction is a higher probability for the equity markets.