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It only feels as though the media have said everything there is to say about the market over the last three weeks of this downturn.
The talking heads are still missing something – something they're just not keen enough to grasp about all of this. But, to be fair, the big news is hard to ignore.
After all, the late week phase of the pullback took all the major indexes back to, or just below, their break-even levels as far as year-to-date returns are concerned.
That's something that should scare the hell out of investors. However, I'm still seeing signs that there is a little too much bullish enthusiasm for stocks to call that "the bottom."
Even accounting for Thursday's bounce, sell-offs have shaved just about 10% from the S&P 500's October high. In doing this, the benchmark index crashed right through its 50- and 200-day moving averages. It's still sitting below those lines as of Friday midday.
So it's "official" in my book, for what it's worth: The market is embroiled in an intermediate-term bearish pattern.
Now let me show you what to do about it…
About the Author
Chris Johnson is a quant - he's obsessed with building and perfecting mathematical models that allow him to predict, with startling accuracy, the direction of the markets, entire sectors, and individual securities. For the last year, he's been researching and building a new system that lets him move swiftly in and out of the hottest stocks in the market for life-changing gains - entirely on his own terms. The results of his newly-minted Night Trader system are nothing short of amazing.
Chris also contributes to Money Morning as the Quant Analysis Specialist.