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Does Retail Send This Market Down Further?

If the market is to be saved, it is going to be saved by institutional buyers at this point. Retail is probably liquidating as we speak. I think this will pressure the market. Most folks hold equities in 401ks through mutual funds. Redemption requests for these funds are processed at 4PM EST, market close, regardless of when entered during the day. Liquidity to meet these resumptions may therefore not be realized until the next day. We have likely had folks just seeing the story of the markets drop on the 6PM news yesterday after going home from work. Such "regular Joe's" likely put in their sells today, Friday. Liquidity will be needed to meet these resumptions Monday. I don't see the selling over just yet.

Disclosure: No Positions