Monday, July 7, 2008
... to sell on bad earnings? So says the market. We've bounced again at S1 (say SPY $125), a second test of Thursday's lows and levels not seen since July 2006. Cumulative Tick had been deteriorating ahead of the plunge.
If this bear has "felt" different to you relative to 2001-2002, you are not alone. With that bear in such recent memory and no turnaround storey at hand, reversal attempts have been few in number and weak in scale. In fact, this negative trend persistence was last prevalent in the 1960/70s. Here are some informative articles from other observers of this phenom:
o Rob Hanna/ Sell-Off
o Rob Hanna/ Five-Weeks
o Brett Steenbarger/ Weakness