BRIEF UPDATE on the BROAD STOCK MARKET (3:00 pm EDT)
Yesterday all three broad stock market indices (DOW, S&P 500, NASDAQ) made new weekly lows. This rules out any intermarket bullish signal for this week and lessens the chances that yesterday's lows were significant turning points for a reversal back up (although we can't rule out that possibility). It is late in the medium-term cycle of the broad stock market, and we are expecting a final corrective bottom to the cycle any time now, but yesterday's lows are still above the ideal targets for a normal bottom. Today's strong rally may be a relief rally off of the "fear factor" of yesterday's total solar eclipse in the U.S. (financial astrologers aside, stock market investors can be quite superstitious!). It could be just a short-term bounce, but if it starts to gain legs and looks like it could push higher into next week, we may have to label yesterday's lows as sub-cycle bottoms and cover our short positions in this market (we are still below our entry point from Aug. 1). We will watch this carefully over the next few days. Holding my short position in the broad stock market for now.
Yesterday all three broad stock market indices (DOW, S&P 500, NASDAQ) made new weekly lows. This rules out any intermarket bullish signal for this week and lessens the chances that yesterday's lows were significant turning points for a reversal back up (although we can't rule out that possibility). It is late in the medium-term cycle of the broad stock market, and we are expecting a final corrective bottom to the cycle any time now, but yesterday's lows are still above the ideal targets for a normal bottom. Today's strong rally may be a relief rally off of the "fear factor" of yesterday's total solar eclipse in the U.S. (financial astrologers aside, stock market investors can be quite superstitious!). It could be just a short-term bounce, but if it starts to gain legs and looks like it could push higher into next week, we may have to label yesterday's lows as sub-cycle bottoms and cover our short positions in this market (we are still below our entry point from Aug. 1). We will watch this carefully over the next few days. Holding my short position in the broad stock market for now.
RSS Feed