Monday, November 19, 2012

Possible Short-Term Bottom In on Friday 11/16/2012

On Friday the market may have put in a short term bottom.  After a 12% decline from the September 14th high in the NASDAQ Composite Index we are looking for a bounce.

After sinking in the morning the market rallied back to close near it's high on Friday. This is a positive. Additionally, our bottoming indicator, which we call a Bingo (grey colored vertical line), is telling us that the market may now bounce back for a few days. I will take some small equity positions for a short term hold. I will monitor them carefully as we are still in a downtrend.

(Click on charts for easier viewing.)
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NASDAQ Composite Index

The grey colored vertical stripes are our bottoming indicator at work. We call this indicator a "Bingo".
The market may have put in a short term bottom.

This blog post does not constitute an offer of investment advice. This blog is only provided for educational purposes. Please read the Important Blog Disclosure posted in the right channel bar.

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