Was That the Market Bottom?
March 10, 2009 2:54 pm
Over the past several weeks, there has been a growing chorus of negativity coming from all directions. It always concerns me when I hear everyone singing the same tune. For instance, recently investing in gold was said to be the only way to protect your portfolio from this economic calamity. Hard assets were on everyone’s minds and pundits were suggesting to buy until it hurt. Well, that was a $80 an ounce or so ago and now gold seems to have lost its shine.
So, how can you tell when we are seeing a market top or bottom? That is next to impossible, but one way is to separate emotions from rationale and consider objectively how many are calling for a top or a bottom. If you recall, the ideas of a bottom have been all but squashed in favor of a DOW 5000 or an S&P 500 at 500. But just this weekend, it was clear that the level of bearishness hit a high chord. Here is why…
Below is a chart I have been looking at for some time. Over the past week or so, it appears that the markets are clearly in oversold territory. Only a few times over the past 2 to 3 years have we seen the S&P Bullish percent below 15. Add to that the StochasticsRSI and the Ultimate indicator and it appears that we were approaching a rally point… and today, we have just that…
Read the entire article and see charts HERE