The daily BPXPX has continued it's path straight down. It's well below the 200, 50, and 30 MAs. It's been a consistent drop since the start of the new year.
The weekly BPSPX is showing a similar pattern as the daily, except the RSI and MACD show we are in an earlier stage than many people might assume. Could this lead to a further drop?
The daily SPX is at support going back to September and August. We could see a bounce as we did back in October and August. If it falls through support... well, it's not good... take a look at the weekly below.
We follow trends and according to the charts above, the trend is down. We would not be surprised by a minor rebound this week, but more downside will likely follow. Over the next few weeks, maybe couple of months, expect a further drop.
- 401K/IRA
- If still invested, get out now!
- If you're in cash then stay on the sidelines and wait for something to develop.
- Stocks/ETFs
- Only invest in VERY strong patterns. Do not forget to have a STOP LIMIT for open positions.
To answer our blog title; yes, we believe we are in a bear market.
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