The SPX has not been performing very well in recent weeks. This week, was also a downer!
As you can see on the charts we have been in a bearish rising wedge, and RSI and Stochastics on the weekly are saying things are getting close to a bottom, but it looks like we are not quite there just yet.
Since Obama has been back in, all the market has been doing is dropping. Maybe to teach him a lesson? It doesn't matter, the news and politics mean nothing and we will follow the charts and see how they develop in the next week.
The market breadth A50R is also saying things are getting close to being oversold, it is evident that we are not at the exact point just yet.
Please Note: Monday is a US Holiday; Veteran's Day / Bonds are closed / Stocks are open
Have a great weekend :-)
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Stocks dropped due to higher capital gains and dividends tax in 2013 and selling before 2013. A counter trend rally is 2 weeks away. It seems there would be a rally soon as you said but this is clearly bear market action. Therefore markets have to get more oversold then you normally would think. More government and redistribution means low economic output. Only a matter of time (6 months) before a bear market develops or we may be in one now.
ReplyDeleteno! We are not in a bear market when prices hit higher highs. Yes I believe a rally is coming soon, as that is what the charts say. We are already down near oversold on the weeklies.
ReplyDeleteNext year is a whole different kettle of fish for the market and economy and we worry about that in 2013.