Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Heading Into Last Week of Quarter, Market Is at Key Inflection Point

By

If we start to see aggressive selling that takes the S&P 500 (INDEXSP:.INX) back below its recent breakout level around 1420, then you need to worry about ratcheting up your defenses.

PrintPRINT
MINYANVILLE ORIGINAL We came into last week about as extended to the upside as we've been at any point over the past three years and in desperate need of some sideways action to help the market digest some. Five days of range-bound action in the major indices gave us exactly that, and we're now at a key inflection point as we head into the last week of the quarter.
The bearish side here is particularly easy to understand, and as always, is quite compelling. Now that the afterglow of the central bank announcements has worn off, investors are starting to worry about the laundry list of negatives out there. We're facing the fiscal cliff, Taxmageddon, a probable European recession, high unemployment, and slowing global growth. Any number of problems threatens to take the wind out of the bulls' sails. Heck, if things are so rosy, then why did the Fed find it necessary to pull out all the stops a couple weeks ago?
Outside of some vague assertions about how "equities are undervalued," the bulls have a hard time coming up with equally persuasive arguments. However, since the low of 2009, the easiest mistake by far has been to underestimate just how sticky the action to the up can be. We all have our doubts about the long-term effects of all this money printing. We can't help worrying that the artificiality of these moves will suddenly be discovered and that the 'other shoe' will finally drop. However, anticipating that has proved to be fruitless.
< Previous
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opin= ion about the performance of securities and financial markets by the writer= s whose articles appear on the site. The views expressed by the writers are= not necessarily the views of Minyanville Media, Inc. or members of its man= agement. Nothing contained on the website is intended to constitute a recom= mendation or advice addressed to an individual investor or category of inve= stors to purchase, sell or hold any security, or to take any action with re= spect to the prospective movement of the securities markets or to solicit t= he purchase or sale of any security. Any investment decisions must be made = by the reader either individually or in consultation with his or her invest= ment professional. Minyanville writers and staff may trade or hold position= s in securities that are discussed in articles appearing on the website. Wr= iters of articles are required to disclose whether they have a position in = any stock or fund discussed in an article, but are not permitted to disclos= e the size or direction of the position. Nothing on this website is intende= d to solicit business of any kind for a writer's business or fund. Miny= anville management and staff as well as contributing writers will not respo= nd to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
PrintPRINT

Busy? Subscribe to our free newsletter!

Submit
 

WHAT'S POPULAR IN THE VILLE