Sellers at work globally | stockbee

10/06/2008

Sellers at work globally

Market Monitor :Bearish

  • 11 month old bear market continues.
  • Secondary indicators are becoming bullish. That indicates a probability of a bounce in shorter time frames. The primary indicator in Market Monitor is yet to reach extreme levels where sustainable rallies develop.
  • The spread of fear worldwide is leading to panic. Panicky markets historically tend to resolve in bounces in the short run. Slow and planned selling dominated bear markets tend to last longer. This market has been slow and not very panicky.
  • The IBD 85/85 list had only 36 stocks this week.
  • Bear markets are good for the long term health of market and once they get over, they offer very good buy opportunities.

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