OptionsDesk broker Richard Perry speaks to Proactive's Stephen Gunnion as the market braces for a slew of US corporate earnings, including quarterly reports from big tech companies including Microsoft, Alphabet, Meta, Intel and Amazon.
Perry noted that the S&P closed at its lowest since July on Friday, continuing a bearish trend that started in mid to late-September.
Depending on how the earnings releases hit the wires, he said they could be a catalyst for further downside if they don't meet market expectations.
Apart from company earnings, Perry said preliminary PMI data, a speech by Federal Reserve chair Jerome Powell and US GDP figures will also drive market direction.
Perry said investors can protect themselves against a further downward move in market levels by buying a 'put' option or a 'put spread' which gives them the right to sell an asset class at a pre-determined price at a future point in time.