Action in the S&P 500 has been very volatile since late June. After hitting highs in May, the 50 day moving average became resistance, and the market retraced. After a bounce, the 50 day become resistance again, and the market pulled way back.
I entitled this forecast “How Quickly We Forget” for a reason. It’s been amazing watching the talking heads on CNBC, and the poor “public” who thought the 20% rally was a return to the good times. So sad, so sad indeed. So sad that hope causes people’s memories to fade so quickly.
For the first time in months, the markets have had not 1, not 2, but 3 consecutive up days. Everything must be better and we can get back to being bullish right? Nope. This weeks rally is perfectly indicative of a secondary move, counter trend rally, correction, or what ever mumbo jumbo you want to [...]
I like being direct. Today’s 5% move which should be a sign of market strength is nothing but a typical bear market counter trend rally; at least it is for now. S&P 500 (SPX) Forecast
As promised, here’s my forecast for the markets. Not too surprisingly, the forecast is down. Click on the Chart to enlarge Then: Click Any Chart To Enlarge
