Sunday, March 22, 2009

Bottom? Bear Market Rally?


So the stock market posts a two week gain... the S&P is way above its low of 666 (nice number btw).

And again... people are calling an "absolute bottom". How many times have they done this in the past only to have their words thrown back in their faces? Pull up a chart of the S&P. Stick on a 21 day Moving Average. See that the slope is negative.
See that price has to cross, and settle over that downward sloping line for at least 15 days before the probability of a head fake substantially decreases. Then start thinking for yourself if you see a bottom or a relief in selling pressure.

1 comment:

PENNY STOCK INVESTMENTS said...

Who knows where the bottom may be.