March 19, 2008
Much like last week when we had a 400-point advance, and in the following days, we saw the market sell-off of those gains, today was no different. After having over 4% days in the NASDAQ and S&P, both indices gave back about 2.5% of those gains. The driver wasn’t any significant piece of news, rather renewed fears that more banks could be in a similar situation much like Bear Stearns.
Market participants find themselves between a rock and a hard spot. Talking heads were quick to call a bottom in the market yesterday (you know who you are!) and eventually they may very well be right. But to come out and say it so quickly, given all the pressure the market has and continues to be under, is irresponsible to say the least. With that said, we at Shareplanner continue to be skeptical of any market rally, and what we saw today, shows you why we continue to be bearish on the current state of the market.
Let’s review the charts…
NASDAQ looks poised to test its lows again as it managed to bounce off of the upper-trend line today on increased volume. This market continues to validate the theory that the rallies should be sold.
CLICK HERE FOR THE NASDAQ CHART
S&P gave back much of yesterday’s gains and has manage to settle on top of the downward trend line that it broke yesterday. Perhaps what was resistance for so long has now become support. We’ll see if it holds tomorrow. If not, then we will be right back to where we were before.
