Saturday, June 26, 2010

Weekly Market Update 06 25 10

The bears had the upper hand this week and not only pulled the market from its recent high but also low enough so that the widely watched 200-day moving averages of the major indexes were pierced to the downside. The S&P 500 fell below its psychologically important 1,100 level and ended the week with a loss of -3.7%.

The market as a whole is now oversold on a short-term basis, so a rally is likely to develop within a day or two. The nature of that rally will provide us some hints about the future trend of both stocks and junk bonds.

No comments:

Post a Comment