Another day of relentless selling that ended in a S&P close below 1,000, the first since 2003. Although we're due for a good bounce soon, I think it helps to step back and look at a long term chart to see what we're dealing with. Below is a monthly chart of SPY that spans the last decade. You can clearly see the end of the .com run-up and the subsequent bursting of the bubble. I plotted a couple of horizontal blue lines to show where I think possible support areas will be.
Basically, as the chart shows, I think that we still have a little ways to go before we can expect any long term turn around. In short, we're most likely heading down for quite a bit longer, which is good to keep in mind if we get a nice counter-trend rally to the upside. Looking at the long-term chart helps keep things in check and hopefully will help keep us unemotional and objective, despite the talking head chatter on CNBC. Best of luck.
TLT
1 comment:
Everytime I turn on the news or CNBC, people continue to opine about investment strategies in these times. Only one dude I saw today said that all the indicators he looking at says its gonna keep going down. All the other shmoes keep talking about is this the bottom, when the bottom comes etc. It seem to a layperson that whenever we get to the bottom it isn't going to come bouncing back up. Like it might be there for a while.
The trash coming out of the media and govt about the market doesnt look right or sound right.
Just like the odds makers didnt when Dallas beat Phily, then Wash beats Dallas on the road but then Wash is underdog by a touchdown to Phily...(with b. westbrook questionable)
At least we've got the lawyer trader.
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