Tuesday, February 04, 2014

Health-restoring correction finally arrives

Yesterday's market decline finally sent the S&P 500 index more than 5% below last month's all-time high mark of 1848.  The last real correction of 5% or more was in June of last year, so the market was definitely due for one.  That long steady interval of market gains was probably one of the reasons that investors became so optimistic (which is bearish in the short-term) and this correction will help to clear out some of the fidgety day traders who can't stomach short-term losses.

The market bots are still invested in stocks, and the internal price forces number is now 6.5 out of 10, which is on the bullish side of neutral.

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