A few noteworthy issues regarding the general market malaise:

1) Volume was on the light side — 1.1B on the Nazz, 1.5 on the NYSE;

2) Up/down volume was less than 2 to 1 negative; Same for the Advance/Decline line (which has been trending down for 4 weeks);

3) The Nasdaq gained 441 points from the August low (1750 – 2191) about 25%; So far, markets have given back about 101 points (on a closing basis — 2171 – 2070). That’s less than 25% retracement (at least so far);

4) On the Dow, we ran from 9,708 to 10,867 — about a 12% gain. So far, the give back (closing basis) is 349 points — about 30%.

The bottom line is that the 2004 rally stole some gains from 2005. We got ahead of ourselves last month, and we are now working off that excess bullishness.

Category: Markets

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

Comments are closed.