- The Big Picture - http://www.ritholtz.com/blog -

Slouching towards Gomorrah

Posted By Barry Ritholtz On January 13, 2005 @ 5:15 pm In Markets | Comments Disabled

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.


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2005/01/slouching-towards-gomorrah/

Copyright © 2008 The Big Picture. All rights reserved.