Markets Take a Bearish Turn
Posted on February 22, 2008
Filed Under Market Speculator |
6:25am EST Stocks sell off after racing higher at the open, have we bottomed?
Stocks raced higher at the open, positive news out of RIMM helped stocks push higher. Factor orders failed to impress wall street and more concern over the economy seemed to get traders to sell off stocks. The market has seen its fair share of gap higher on news only to sell off and we have seen the reverse of this. We are forming railroad tracks around our near term low.
Where are we headed from here, have we bottomed? I am leaning towards the “NO” camp here. Volume has not been on the positive side and the price action has decisively been on the downside of things. New Lows reached 182 yesterday while new highs hit 88. More stocks are above short term moving averages than they are long term averages. This only spells trouble for the overall market. For any meaningful upside, stocks need to show some strength to push higher. At the moment, we’ve only seen long term weakness and some short term strength.
Be weary of calling anything a bottom, stocks do not seem like they have started to form any meaningful bottom here.
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