Stocks were hit hard again on Wednesday as the C, S and I-funds dropped 3.3%, 4.1% and 3.6% respectively. Bonds (F-fund) were the winner again as investors looked for safety.
Technically, the S&P 500 chart has broken down and things need to improve post-haste or it will be a quick trip down to the 740 lows made in November.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
This is an options expiration week, so it supposed to have a positive bias, but unfortunately this January is looking like a repeat of January 2008.
We have talked many times about the power of the bear market rallies, and that we were likely to see 20% to 30% rebounds, but like the bear market of 2000-2002, those rallies eventually flip back down.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
I think the best we may hope for is a successful test of the November low, which would make a double bottom. You can see above that there were two successful tests of the low made in October 2002, before the market started to recover out of the bear market.
The NYSE is now oversold, but nothing too extreme.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
As I mentioned yesterday, the stronger seasonality kicks in two days before the Martin Luther King Jr. holiday, but I wouldn't use seasonality as a primary indicator.
Chart provided courtesy of www.sentimentrader.com
You can check out Wednesday's commentary for a review of the pre/post Inauguration historical results - just in case you are looking for a play.
That's all for today. Thanks for reading. See you tomorrow!
Technically, the S&P 500 chart has broken down and things need to improve post-haste or it will be a quick trip down to the 740 lows made in November.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
This is an options expiration week, so it supposed to have a positive bias, but unfortunately this January is looking like a repeat of January 2008.
We have talked many times about the power of the bear market rallies, and that we were likely to see 20% to 30% rebounds, but like the bear market of 2000-2002, those rallies eventually flip back down.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
I think the best we may hope for is a successful test of the November low, which would make a double bottom. You can see above that there were two successful tests of the low made in October 2002, before the market started to recover out of the bear market.
The NYSE is now oversold, but nothing too extreme.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
As I mentioned yesterday, the stronger seasonality kicks in two days before the Martin Luther King Jr. holiday, but I wouldn't use seasonality as a primary indicator.
Chart provided courtesy of www.sentimentrader.com
You can check out Wednesday's commentary for a review of the pre/post Inauguration historical results - just in case you are looking for a play.
That's all for today. Thanks for reading. See you tomorrow!
