Stocks Tumble
Today was an ugly day for the stock market as the S&P500 sank almost 4%. A combination of a weak Euro and an unpleasant jobs report put pressure on stocks right from the opening bell. Volume was heavy which hints that a retest of the recent low is likely.
I still feel the stock market is in a bottoming phase but so far there hasn't been any technical buy signals. What I am looking for is a break of the downtrend line drawn from the April high or maybe a bullish engulfment pattern or several up days on better than average volume etc.. you get the idea.
Some of the international ETFs such as EWP and EWI have already broken last month's low. These stocks have been leading our market so I think a retest of last month's low in the S&P is just days away.
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3 comments:
This is one weird bottoming with stocks trying hard to bounce but coming back very hard. The sentiments lifted some from the rock bottom readings with little to show in the SP500. I can't help but remember disappointing 'bottoming" in January 2008, July 2008 or September 2008.
I'm confused, but all in cash.
Jack
Today market closed below its 263 days SMA. Backtesting last 20+ years this SMA was the best, it could be beginning of a longer down move.
Nice blogs you have here!
I think were going back to test the $940 levels from June 09.
Should create some pincher plays though.
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