Ian Woodward's Investing BlogStock Market: Garden Variety Pull Back or Worse to Come?
Some pundits rightly say that we have had a Garden Variety Pullback so far, with an approximate 6% down from the Market Index Highs, but the Bigger Question is “Will it end around here or is there more to come?” Which leads me to my usual picture of Custer’s Last Stand at times like these:
The following picture of the Market Indexes a couple of days ago shows the strong shot across the bow to give the Bears complete control at that stage:
…And here is the damage done to the small caps Russell 2000 Stocks which has broken the sacred line:
Here is a Measure of the Degree of Oversold in the S&P 1500 which has not been seen since April 2012!
…And here is what it looked like around April 10 2012, which was one of the worst Oversold we have seen:
The bottom line is that 12 Drummers Drumming, Grandma’s Pies, Bucketology, gives us ADVANCE clues of what to expect and the direction the wind is blowing:
Keep your powder dry and good luck,
Ian.
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