My opinion on market direction has not changed, I still believe lower prices are ahead of us. The markets are oversold and have been due for a short term bounce (still has not occurred yet). The fundamentals of the economy both in the US and particularly in Europe continue to deteriorate on an intermediate term basis. The Greece debt crisis and the potential default are an overhang on the markets, as well as slowing growth and inflationary pressures worldwide. Below is a chart of the S&P 500, and where I believe we may be headed in the near term, which is prior support or at least a 200 day moving average test.
A break of the prior support in March would be a negative for the technical picture, and would change the intermediate term picture to down trending, from its current up trend. The longer term trend has not changed yet, and continues trending higher.
Bottom Line: Plenty of people have already called last weeks low the bottom for this correction. I am neutral to that assumption on a technical basis and feel there are plenty of risks to creating new equity positions today. As usual, it should be an interesting week ahead. Thanks for stopping by.
Contact: 586-431-8000
I am neutral to that assumption on a technical basis and feel there are plenty of risks to creating new equity positions today.
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