MarketAxess Holdings, Inc. (MKTX) Stock Forecasts

Summary

Following a panic low, which occurred Monday at the open, we saw a strong bounce to the upside that was followed with decent gains on Tuesday and into Wednesday. Unfortunately, the move higher on Wednesday led to a heavy dose of selling as the major indices gave back all their gains, and then some. That’s certainly not the type of response that gives us any confidence that the low is in after a massive volatility (VIX) spike, plenty of daily oversold readings, and a major pop in fear. Volatility is probably not going to disappear quickly, so it’s likely a good idea to have some Tums within reach. The S&P 500 (SPX) was up over 1% in the first 30 minutes of trading Wednesday, but finished with a 0.8% decline. The Nasdaq and the Nasdaq 100 (QQQ) were also up just over 1% and ended with 1.1% and 1.2% losses, respectively. So why did the indices turn tail? The SPX filled the price gap created on Monday (always a potential stopping point) and also ran out of steam at its nine-day exponential average (which is heavily used by traders and algorithms). The SPX also ran right to a 38.2% retracement of the decline (almost to the point). The Nasdaq and the QQQ also ran out of gas after filling Monday’s gap and never reached a m