In fact, the only thing the bulls have in their favor right now is the fact that near term sentiment readings are starting to move into the excessively pessimistic range. In an established downtrend pessimism does not make for a good reason to step in and start buying stocks.
Moreover, the fact that the market couldn’t put together more than a one day rally following the FAN/FRED bailout just adds emphasis to the precarious position that stocks are in here.
2 comments:
Hello,
I don´t understand what you mean by "the 50-week average and the lower weekly Bollinger Band continue to steadily drift lower"... do I have to look at the daily chart or weekly? If I look to both charts, I don´t see the things you are mention... could you send me a picture so that I can see what you mean?
Thank you
If you look at the Risk Assessor you will note that we have been tracking the price position of both the 50-week average and the price of the bottom B Band.
Both have been steadily dropping indicating that the trend remains down and that long term prices have not been stabilizing.
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