Bonds did not respond like they normally would on a huge sell off in stocks like what happened today.
Both S&P gaps were filled this week on the downside. No more vacuums to fill near the bottom, but a lot of support from 1365 to 1400. Even if we hit a new low, it's likely to be a stop run, then a big move up...
I think this market is going to trade range bound like it has, breaking 14k anytime soon and going to new highs to me right now is about a 5% chance over the next 12 months, not going to happen. I think shorting right now could be somewhat risky, I see a bounce over the next few days. As for the start of the new year, the dow has had its worst start since 1932. So many were pumping these markets up in the last qu of 2007 that you thought there was no where to go but up, now that this has turned around many are thinking that this market has no where to go but down. Earnings have been lowered across the board, mostly due to the financials, there is even talk of about an additional $100 billion worth of write downs, if this is true the markets could easily see another 10% drop in my opinion. Right now I would would sit tight, I think the DOW back below 11500 would be a great buying opportunity.
Looks like someone's longs are under water. : ) http://www.elitetrader.com/vb/showthread.php?threadid=113446]
Monday will likely gap up and then crap down again all day fooling traders again. One of these days the market will rally but I don't think it will be Monday. I see no fear yet, just a little concern.
it's likely that the market will give it a quick and short bounce before it resumes it's way to the downside... what worries me the most is that there's nothing positive (or was there ever) that can take the market up --- why will any rate drop helps... apparently the unemployment in the USA is getting close to 3rd world countries... http://www.tradeforgain.com/market-...-high-how-does-it-compare-to-other-countries/ so, I guess down is the way to go at the moment.
I'm still amazed by people's reluctance to accept that cycles exist and a 15%/20% correction is nothing to worry about. Too many rookies around
you're sadly mistaken. the p/e of the sp500 is currently 16, which is the historic average. its historic lows are at 6. whether a bear market will begin now, i don't know, because it depends on more than just the p/e. by the way, for much of the 1973-1977 period, the sp500's p/e was at or below its average, but during that time the market was flat or declining. so don't think that a low p/e means you're out of the woods.