On the final day of August, the Dow Jones Industrial Average slid nearly 0.9%. The S&P 500 lost about 0.8%, and the Nasdaq Composite fell roughly 0.6%.
The Dow closed the month down about 4.1%, while the S&P and Nasdaq recorded losses of 4.2% and 4.6%, respectively.
Investors are debating whether stocks will again challenge the June lows in September, a historically poor month for markets, after weighing recent hawkish comments from Fed officials who show no signs of easing up on interest rate hikes.
On Wednesday, Cleveland Federal Reserve President Loretta Mester said she expects interest rates to rise above 4% before the central bank can start pulling back. The current fed funds rate is 2.25%-2.50.
The current $SPX level dropped to pretty much at my target level (which I predicted few days ago in my blog) – $3900-$3930 is my target short term on SPX. Today we closed around $3955. Currently, on 4 hr chart we are forming “red death h” – The target for that death h is pretty much aligned with my previous target of $3900-$3930 range. If we don’t bounce from here then red death of H will take us there tomorrow.