Dow industrials, Nasdaq down about 4% this week; S&P off 3%. I expected this week to be flat to down and my expectations were met. The market was down almost every day this week in the face of higher oil and a weakening economy. Dow's off about 20% from last October when the sell off first started.
I still do not think we have seen a bottom, as bad as the market has been there is still not enough bearishness in the market to start any significant rally. I don’t believe we will see a bottom in the market until we get a few more investors to throw in the towel as the market is hitting fresh lows for 2008 – that would put the S&P 500 around 1250 – or about 3-4 % lower than where it now stands.
I think this market will take one step forward for every two back so we may see a relief rally this week going into the 4th of July holiday . If the market does gain – I don’t think it will be much and is not worth the risk of putting any new capital in at this point. Be patient and wait for an entry point below S&P 1250.
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