Last week’s choppy action in the major market averages – including the noteworthy outperformance of the Nasdaq – so far seems consistent with consolidation in the market’s current short-term uptrend from the recent lows. A break below ~1230 on the S&P 500 and 11,100-11,200 on the DJIA, however, would change this picture to something [...]
With gloom and doom everywhere and most stocks trading at extremely oversold levels, last week began with the perfect combination of ingredients for a rally, and the market didn’t disappoint. The strength of the move up so far is impressive, and while its sustainability has yet to be determined, for now it appears to have [...]
Some real fear and panic began to appear in the market on Friday as concerns over Fannie Mae (FNM) and Freddie Mac (FRE) sent the market down by over 2% at one point during the day (as measured by the S&P 500). This helped move sentiment indicators closer to the sort of extreme levels that [...]
Despite the market’s continued move lower, there still aren’t any clear signs yet of a bottom. Certainly the market is “oversold,” and some recent sentiment indicator readings, such as Mark Hulbert’s Stock Newsletter Sentiment Index, are showing extreme bearish sentiment – a bullish sign.
Still, the market can become even more oversold, and market participants [...]
