Will we Test Last Week’s Lows Tomorrow?

Last week, stocks had the really big down day we all heard about. This last Tuesday, we saw the S&P-500 stocks have a nice 1.6% rally. However, today, it looks like those gains are going away … at this writing (2 PM Central), the S&P-500 is down 1.3% or so.

I expect that we will retest last week’s lows tomorrow, unless there is a big rally in the last hour of trading today. Either way, we are content to hold 43% cash in our conservative asset allocations.

Take care to manage your risk.