It's Friday. What Else Could We Expect?
Nearly every trading day the market finds a low early in the session and rallies higher throughout the day. Today is no exception to the usual market action except that it is a Friday. Rarely, will the major stock market indexes decline sharply on a Friday. This is when U.S. consumers will begin their weekend and spend money. If someone saw the stock market down sharply ahead of the weekend they may think twice about spending their cash. Therefore, we call the end of the week the 'Friday Effect' and look to buy the dips.