Nothing about these 2 charts suggest we’ve hit a bottom and that we’re going to bounce. If I was a betting man (which I’m not ironically) I’d say were going to see some serious resistance near the 200ma. Maybe we pop slightly higher, but I have a hard time seeing that happening.

SPX

Today’s pop higher did nothing but close the gap from 2 wks ago. If we start to roll over, this could get ugly, fast. However, I have to be aware that this rally could surprise me and I’ll be watching for accumulation signs.

nasd

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5 Responses to “Does This Look Like a Bottom?”

  1. Merc Says:

    You make a good point on the gap. And volume was low, so not exactly inspiring for more upside. Probably another test of the low before going higher. But even there, bulls may have a tough time reclaiming the 50 DMA. Maybe the falling channel at SPX 1130.

  2. Jeff Pierce Says:

    It's possible, but since we made a lower low on the daily, something tells me that it's not going to be that easy. One thing that supports my belief are some of my proprietary indicators that I can't go into, and they're really bearish right now. They could change after a retests and some firming up of the markets. We'll just have to wait and see.

    Thanks for all the comments merc.

  3. Merc Says:

    Good to hear your indicators are bearish. Don't get me wrong — I'm very pessimistic about the market. But I do expect a final rally attempt before the whole thing goes down.

  4. mike Says:

    How long can government intervention go? Can't they just continue printing money especially on the renewed strength of the US dollar.

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