Today's Comments (Short Term Outlook)                             Printer friendly

Waiting on a panic low Stocked staged a decent comeback yesterday finishing slightly positive after being down most of the day, but from a technical standpoint, the charts put in a lower low so there's nothing to get excited about yet. The S&P 500 is still in a poor position technically and I believe we will need some sort of panic selling before we get a decent playable bottom.                                    Chart provided courtesy of www.decisionpoint.com I spent most of Monday night battling a hardware issue so I have to cut this short today.  I'll see you back here tomorrow.  I'll leave you with some interesting data and comments from Sentimentrader.com.  It shows us the results following a consecutive four month slump (negative return) in stocks which we have had in the S&P 500:                                          Chart provided courtesy of www.sentimentrader.com From Jason at sentimentrader.com:  We can see from the table that only two months showed a negative return from the low of the 4th down month to the next month's low.  That means that four out of six times, the S&P put in a higher low the following month.  The returns to the next month's high were astoundingly large, averaging +13.2%, showing that there was a distinct rebound effect at work. -- Jason Goepfert Have questions?  Visit our message board for answers.  Would you like to be on our email alert list?  We will send you an email when there is a change to our asset allocation or market outlook.  Your email address will never be given out.  Read our privacy policy.  By signing up you agree to the TSP Talk Terms of Service.  More details below **. Are you bullish or bearish?  Join the Weekly Sentiment Survey. Like what you're reading?  Tell a Friend about us.