You nailed it on the head. The market does have this habit of moving to extremes however and I wouldn't discount the market getting pushed to sub 700 at some point over the next 12 months. Short-term traders say they 'trade what they see.' Well, all any chart can really show you is the rear-view mirror & currently that view will lead a number of traders to overdo the selling. IMO.
Absolutely agree, Jack. It only bothers me because I have a young child. Human nature...what a mess. It got us where we are, you might say...with all that that implies. g
i think the worst point drops in the indexes are already behind us, but we've got another 2-3 yrs of bear market left.
i'd be shocked if we didn't take out the october lows. what the hell was so special about them? this has just been another pause in an otherwise very healthy bear market. why in the world would anyone think we've seen a bottom yet? it's not like there's anything even remotely positive in the economic outlook for the next 12 months; business is cutting profit estimates every day. PEs are still wildly expensive -- and there's no hot air holding them up like there was in the bubble era. market cap as a proportion of GDP is at historically VERY high levels. yeah, yeah. that's all worthless BS to the 'trade what u see' crowd. to them the market exists in a vacuum. i wonder how of them will be left come the end of the year.