When Will It Turnaround?

Now that the S&P 500 hit another new low, investors are curious when things will finally turnaround. Is every rally just a bear market rally? The market hit a major intra-day level low exactly two weeks ago, and we've been hovering above it ever since.

I'm no technical analyst but it does seem that the market likes to test its recent lows, and if no new low is made, prices rally. Fortunately, we didn't break through the intra-day low from October 10. What impresses me is that most of the rally since October 10 was in pretty bad stocks, while the higher quality stocks, like our Buy List, haven't been doing too well.

That just tells me that this two-week interlude was merely a reaction against the reaction.

by Eddy Elfenbein |  10/25/08  |  Stocks: SPY,