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OklaBoston (60.21)

Market bottoming out?



February 09, 2009 – Comments (0)

There is some, admittedly weak, evidence that this bear market might be bottoming out. the 30 week (not day, WEEK) CCI for the NASDAQ Composite Index is now -47.85, which is hardly a bullish number, but is less bearish than the S&P 500's number of -58.57. That, in turn, is less bearish than the Dow Jones Industrials -68.57. Which indicates that small-cap stocks are momentarily outperforming mid-caps, and even more thorouhly outperforming the huge caps in the Dow Jones. When small-caps outperform the rest of the market that's (theoretically, anyway) a good sign.

 We also need to remember that recessions and bear markets DON'T last forever, they just seem to.

I'm thinking, at the moment, that most indices will mark time for a while as their Bollinger Bands narrow. So don't go on any buying sprees yet. but consider covering any shorts you may have in your real-money portfolios.

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