Market Monitor: Bearish
- Market is in Fed anticipation mood and can go either way . Not a time to play aggressively. So no new long or shorts at this stage.
- Considering the carnage in overseas market and Bear Sterns news, the market has withheld well.
- Since the beginning of this bearish phase , there has been no washout move, which can set us up for a tradable bounce.
- Large caps lead by Dow Jones members are showing divergence. The Dow stabilisation at this level is good sign. For those wanting to play reflex bounce, that is where action might be.
- For all the bearishness and constant negative news and chatter , the low on 1/22/2008 is still more or less intact. Something to keep in mind.
- A reflex bounce is a possibility at this stage more
1 comment:
My 'washout' signal occured 3/10/08, when almost 90 % of the stocks were down with volume 9 to 1 to the downside.
On Friday 14, Vix was a 31.16,Volume from the NYSE, AMEX, NASDAQ WAS 10 TO 1 TO THE DOWNSIDE ON EACH ONE.I cannot remember exactly,but it was like 250 stocks up vs 3800 down.The % above the 20 ma was 20.many of the breadth indicators like summation were pointing market at extremes
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