By Andrew Nyquist
It’s been a long couple of weeks for the stock market. After breaking down and out of the pennant formation, the S&P 500 has fallen 100 points, or 8 percent. But, the good news is that the market may be nearing a short term, tradeable bottom.
DeMark Analysis, one of my favorite tools to use in conjunction with more traditional technical analysis, is indicating a bottom by Tuesday — See Annotated Chart below. Although investors still need to be cautious through Tuesday, it is now the time to start identifying good stocks for a short term trading bounce. Longer term investors can also use this sale to average in. But, note that a true market “bottom” may not be in yet, as the debt crisis remains uncertain and unresolved.
———————————————————
Your comments and emails are welcome. Readers can contact me directly at andrew@seeitmarket.com or follow me on Twitter on @andrewnyquist. For current news and updates, be sure to “Like” See It Market on Facebook. Thank you.
No positions in any of the securities mentioned at time of publication.
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of his employer or any other person or entity.
