Last week had one less trading day in it, yet that didn’t stop the major indices from posting some full-sized losses. The S&P 500 dropped 4.3%, the Russell 2000 sank 5.7%, and the Nasdaq Composite declined 5.8%.<\/p>\n\n\n\n
The list of casualties goes on. For instance, the Philadelphia Semiconductor Index plunged 12.2%, NVIDIA (NVDA)<\/strong> tanked 13.9%, and Dollar Tree (DLTR)<\/strong> plummeted 21.3%.<\/p>\n\n\n\n It is perhaps no surprise, then, that there is a rebound impulse this morning.<\/p>\n\n\n\n Currently, the S&P 500 futures are up 37 points and are trading 0.7% above fair value, the Nasdaq 100 futures are up 146 points and are trading 0.8% above fair value, and the Dow Jones Industrial Average futures are up 277 points and are trading 0.7% above fair value.<\/p>\n\n\n\n The trend reversal has extended to the dollar, oil, and Treasuries. The U.S. Dollar Index is up 0.4% to 101.62; WTI crude futures are up 1.1% to $68.43\/bbl, the 2-yr note yield is up four basis points to 3.69% and the 10-yr note yield is up three basis points to 3.74%.<\/p>\n\n\n\n It is too soon to say this is the start of something big. It is simply the start of something after big losses, which makes it reflexive in nature. Frankly, how the market starts today is irrelevant to how it finishes.<\/p>\n\n\n\n Will there be a successful buy-the-dip rebound or will the gains invite renewed selling pressure?<\/p>\n\n\n\n