Dow Tumbles 700 Points for its Worst Drop Since October

The stock market tumbled on Monday as worries about the Covid-19 Delta variants flared up. The Dow dropped 725.81 points, or 2.1%, to 33,962.04 in a broad-based stock market route that sent all 30 of its member stocks lower. At one point during the session, the Dow was down 946 points before recovering some ground into the close.

The S&P 500 fell 1.6% to 4,258.49. Energy, financials, and industrials were the worst-performing sectors. With the S&P 500 around 3.5% off its record highs, we note that fear has exploded. The last time fear was this high, the S&P was down 40%!…

So far the seasonality has played out very well.

Based on the S&P 500 Blackbox forecast it seems we are in the late stage of the squeeze and things should be fading soon.