Goldman Sachs says the US equity market is on “correction watch”

A note from Goldman Sachs on US stocks, comments ion brief:

• August equity-market flows are typically the slowest of the year
• markets have historically pulled back from mid-July highs
• on guard for a “late summer equity market correction” if earnings disappoint and investors begin to focus on the autumn election results
• pain trade has shifted from the upside to the downside
• buyers are full and running out of ammo after the best trading days of the year are now behind us

This article was written by Eamonn Sheridan at www.forexlive.com.