Bear Market Rallies…
Just in case you have forgotten!
Bear market rallies:
Are sharp, quick, make you feel good, get everyone calling a bottom, wipe the smiles off the bear’s faces, suck you in…and then bury you soon after.
Bear market rallies are typically stronger than bull market rallies because of the vicious short covering.
Bear market rallies, very often, occur with a series of gaps to the upside trapping shorts and preventing those who want to get long from getting long.
Bear market rallies typically end when things are calmer, things are quieter and a big sigh of relief falls over Wall Street.
Bear market rallies usually peter out in and around declining moving averages, mainly the 50 day and if not, the 200 day moving average.
Good luck!
Incredibly we are still in sync with 08, I got clouded with all the other markets doing their own washouts and the volatility bands which are appear greater than 08. S&P should now remain in a very boring holding pattern, prior to a retest of the Jan low in March followed by a move to the declining 50ma if 08 still holds true.
Really miss your program on Phoenix radio, 1510 Financial News Net Work. Seems someone else has your “slot”. Did you move to a different time??
Bill Smithers
5 pm phoenix time
Looks like this world washout cycle isn’t over, 4000 on the NDX is holding as resistance, Nikkie washout still in process. If this finishes weak today, I feel this story is unfolding faster than is imaginable.
oops…Russel washout Jan low already taken out!