The price action in equities isn’t great right now and the selling at this time of year reminds me of December 2018. There’s some heavy tax loss selling and it’s hitting in an increasingly-illiquid market.
That year from Dec 13-24, the Nasdaq fell to 6190 from 7154, or 13.4%.
The drop was compounded by a break through old lows and fell in 7 of 8 days before bouncing all the way back by mid-January.
I can easily see something similar unfolding now, though there is more room ahead of the October lows.
Nasdaq daily current
This article was originally published by Forexlive.com. Read the original article here.