One of the challenges retail investors face is having the capital resources to participate in many of the Wall Street darling stocks. With billions of dollars at the disposal of hedge fund and money managers, it doesn't take long for stocks with a promising future to be bid up to levels that exceed the reach of the average investor.
The selling continues across the board as stocks, bonds and commodities take a much anticipated breather. At this point we are calling this a correction rather than a crash for U.S. and Canadian equities however key support levels are being tested. Much like a small hole in a dam, once there's a trickle, the risk of an all out collapse is always a concern. Both the S&P 500 and the S&P/TSE Composite are at levels that are testing the resolve of the most dedicated bulls. We were watching for the "buy on dippers" to filter in today, however at the time of the close Monday we had only seen a moderate snap back of off the lows. This was most likely short covers then bargain hunters but another day of price action should give us some more evidence. Take a few minutes to watch today's Market Forecast to see what we think is in store for the rest of the week.