The fed playing into our hands
Analysis Monday – worst case appears to be the 30 movin up a couple of more days, makng a lower high as the 10 makes a lower high and rolls over. This could come late this week. If it does that could be the correction. The story would be softness in Europe showing up in multinational companies. This is inevitable,and will lead to more outperformance by domestic u.s. eincome producers, and unlikely but maybe small caps which produce u.s. revenues. Europe will slow U.S. economy while the carry trade moves stocks up. Something has to give.
tuesday
wednesday
Yesterday dropped out of range on high volume. Odds favor markets eventually moving to oversold.
Today – inside day – no new information.
This is what it looks like up close
Advances and decliners – net advancing issues Upside volume less downside volume New highs vs. new lows Points gained vs. points lost
FEB 2002 OCT 2002 DEC 2002 Ongoing Bear Market
DEC 2007 Leading up to bear market
SEPT 2008 Led to The Crash of September 2008
SEPT MARCH AUGUST In the late stage demand is eroding
SEPT MARCH AUGUST
Selling pressure now at lowest point since 2009 No sign of Bear Market
Why does US deserve higher p/e? is it just a bad deal? Or ….