Each Bar on the chart is one month. Since the high in September, 2008 we have closed lower times and higher once (December).
You can see the slope of the market is very severe. This cannot be sustained much longer without a sharp rally to the upside. This really could start at any time.
The bad news is that the market could go to 565 on the S and P 500 before the rally starts. This is the extreme case and would only happen in a severe occurrence of a market capitulation. Given the current political and economic climate you have to believe that anything is possible. Unlikely yes, possible, yes.
For those holding cash, any hard down opening is likely to present an opportunity to buy high quality stocks at low low prices.
I will be monitoring this possible market capitulation around midnight and 7 AM each day. You are welcome to come here and check. You are also welcome to subscribe via email, RSS, or Twitter to get the updates.
You can see the slope of the market is very severe. This cannot be sustained much longer without a sharp rally to the upside. This really could start at any time.
The bad news is that the market could go to 565 on the S and P 500 before the rally starts. This is the extreme case and would only happen in a severe occurrence of a market capitulation. Given the current political and economic climate you have to believe that anything is possible. Unlikely yes, possible, yes.
For those holding cash, any hard down opening is likely to present an opportunity to buy high quality stocks at low low prices.
I will be monitoring this possible market capitulation around midnight and 7 AM each day. You are welcome to come here and check. You are also welcome to subscribe via email, RSS, or Twitter to get the updates.
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