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Where’s The Bottom?

  • Written by Syndicated Publisher No Comments Comments
    December 16, 2013

    The market has now been down 8 of the last 11 days, interrupted only by the brief positive reaction to the jobs report, and it looks like the short-term correction we expected has begun.

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    The next question is how far it goes before finding support, the 50-day m.a.? The trendline?

    Or perhaps the long-term 200-day m.a.? After all, this is the first year in at least 15 that the S&P 500 has not returned to its 200-day m.a. at least once during the year, to either retest the m.a. as support in a bull market, or as overhead resistance in a bear market.

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    We’ll just trust our short-term and intermediate-term indicators to let us know.

    Next week will be an important week for economic reports.

    After a quiet week of virtually no reports of importance, next week will bring reports in several areas that have raised concerns among economists and analysts.

    Housing Starts, the Housing Market Index, and Existing Home Sales may reveal whether the recovery in the housing industry is stumbling or not.

    The Consumer Price Index will provide further info on the latest concern, whether the year-long decline in inflation continues and may even be threatening to morph into the historically dreaded deflation.

    And there will be the December FOMC meeting and the Fed’s taper decision on Wednesday, along with Chairman Bernanke’s press conference with his tendency to roil markets when he tries to provide ‘transparency’.

    And on Friday will come the next scheduled revision of 3rd quarter GDP growth, as well as the quarter’s quadruple-witching options and futures expirations.

    Should provide ample opportunities for shouting debates on CNBC.

    To read my weekend newspaper column click here:  Three Stocks To Avoid

    Images: Flickr (licence attribution)

    About The Author – Sy Harding, Street Smart Report

    Sy Harding publishes the financial website Street Smart Report Online and a free daily Internet blog at Sy’s Free Blog. In 1999 he authored Riding The Bear – How To Prosper In the Coming Bear Market. His latest book is Beat the Market the Easy Way! – Proven Seasonal Strategies Double Market’s Performance!

    It includes our research and analysis on the economy and markets, and provides charts and buy and sell signals on the major market indexes, sectors, bonds, gold, individual stocks and etf’s, including short-sales and ‘inverse’ etf’s.

    It provides two model portfolios as guides. One is based on ourSeasonal Timing Strategy, one on our Market-Timing Strategy.

    In depth updates are provided every Wednesday, with interim ‘hotline’ updates every time we make a trade. An 8-page traditional newsletter Street Smart Report is provided on the website every 3 weeks, in pdf format for viewing or printing out.

    There is the Street Smart School of online technical analysis ‘seminars’,commentaries to keep you ‘street smart’ about Wall Street, and much more. 

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