Tag Archives: SPT-EO
It’s hard to put the conclusion more simply than that. The stock market has tried valiantly to bounce off the April 23 low. So far, though, the rally hasn’t gained any real traction. There’s “no momentum.”
You can see the problem in the 10-day rate of change for the Standard & Poor’s 500 index. This momentum gauge has made a series of four declining peaks since February.
The stock market tried this morning to build on yesterday’s gains, but no luck. It looks as if there’s still enough selling pressure overhead to push prices back into the base that has formed in the 1140-1145 zone on the Standard & Poor’s 500. That’s no big deal for those of us who are buying stocks for the long pull (two to four years).
After yesterday and today’s trading on Wall Street, you may be reaching for the Prozac. I can’t blame you.
The volatility we’ve seen in the stock market over the past few days, both up and down, is enough to drive the calmest soul to manic depression. It’s stock market irrationality in purest, sublimest form: Investors are unsure about the future, so the slightest news impulse goads them to buy (or sell) in a herd.
We’ve just taken the first two steps.
Yesterday and today, buyers came out of their Wall Street bomb shelters and made their first tentative purchases. Another good up day tomorrow would help, but we’re still in the earliest stages of a long recovery road for stocks. Be prepared for lots of back and forth action as the market indexes try to form a solid bottom.
Stock market investors aren’t happy campers tonight, with the major indexes closing the session at fresh 2005 lows. More selling appears likely at tomorrow’s open on the heels of this afternoon’s wet-blanket earnings report from technology bellwether IBM. But is the world coming to an end? Hardly.