Today we focus on the most important index - The S&P500 - when technicians talk the market - this is the gauge they all use. In the session today, the market started up big, over three percent at the open. It looked as if after 4 days of brutal losses, the bulls were finally going to re-establish the uptrend of the last few years - but, something funny happened on the way to the victory - the bears stood up and slapped the bulls down and turned a big up day into yet another solid defeat.
The market ended down 1.22% - and that's quite the down day when you consider both where the market has been lately (crashing) and the stunning intra-day reversal it took to reach that down day. This is a massive bear flag for the market. The bulls are not in control in the short term. No.
Caution on this market. Do not take it for granted the market will zoom back up to regain its highs. That's very premature. The SPY experienced a market correction (down 10% by the technical definition) - in five trading sessions. That's not good stuff.
Watch out for the bears tomorrow. Watch out for investors selling any rallies that do occur.
The market ended down 1.22% - and that's quite the down day when you consider both where the market has been lately (crashing) and the stunning intra-day reversal it took to reach that down day. This is a massive bear flag for the market. The bulls are not in control in the short term. No.
Caution on this market. Do not take it for granted the market will zoom back up to regain its highs. That's very premature. The SPY experienced a market correction (down 10% by the technical definition) - in five trading sessions. That's not good stuff.
Watch out for the bears tomorrow. Watch out for investors selling any rallies that do occur.