While the market drop was deep and widespread, Keith Springer of Springer Financial Advisors, said the downdraft reflects a lack of good news for the market to consider rather than bad news out of Europe or China. Market participants have been hearing about rising inflation in China, and Irish debt troubles for some time, he said.
“There’s no positive news to counteract any of the negative news, which really isn’t all that bad,” Springer said. “The market is using this as an excuse to step back and sell off a little bit.”
Springer believes the market could sell off 3 to 5 percent from its highs before the Fed’s stimulus plans take effect and the market starts moving higher. He expects the Dow could rise as high as 13,000 and the S&P 500 could hit 1,250 before a bigger correction occurs.
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