So much for winter and hibernating bears. It seems to be panning out that on the first day of astronomical winter, the NASDAQ will be closing with a +20% loss from it's late summer peak. So it is now in what they classically call a "bear market". How soon until the S&P and Dow follow suit? The S&P doesn't have far to go at all, and the Dow needs another 1K points or so?
I think s$p and Dow enter full blown bear market within days..... Dow is only a bit over a 1000 points away....technicals are extremely broken. Absolutely no reason to buy anything unless you can catch a minor 3% rally somewhere which I do see happening after this extreme selloff, however any profits should be taken immediately...
I don't think he meant that the technicals themselves are failing in the strictest sense, just that there are technical support levels that have been broken.
There were several drops in the 1990s that were almost exactly 20%. They reversed right away and didn't turn into bear markets. I'd never take any percentage or point drop too literally.
I agree. There were more than a few drops that stopped right at or just a bit less than 20% from the high only to rally and make new highs. HOWEVER, i hate to say it but this time is different. We are in a rising interest rate environment where stocks were fueled by low rates. The fed is unwinding its balance sheet which in itself raises rates. Earnings have undoubtedly peaked and the economy is slowing. We have a trade war and Trump will not give in and he shouldnt give in. We may get a bounce with the s&p hitting 2360 area. I can also see the nasdaq retesting the Old highs from the year 2000 which was around 5500 i think. One thing is for sure, sentiment has dramatically changed and selling begets selling. Ive seen this movie before and each time wall street tells us how compelling valuations are. Dont believe the hype.