Ian Woodward's Investing Blog

Stock Market: “V” Bottom Market Has Fangs

A Month ago we had utter turmoil in the Market and now we are into New High Territory.  Be careful as this market has Fangs!

V Picture

After a “V” Bottom, this Market has been very strong and all Indexes are back into High Territory; this market can go higher but is due for a Pause:

V Indexes

The move this month has been remarkably strong coming off a “V” bottom, and now the rally is 16 Trading days long, so a bit long in the tooth:

V Pat

In the last two years, there have been only five occasions that the rally has been higher than 16 days, so we must look for a correction soon:

V Drummers

If the pullback in the S&P 1500 has %B stay above 0.7, the Market will remain healthy, otherwise watch out below:

V Percent B

Five weeks ago we were in the depths of a 10% correction and potentially going lower, but to our amazement we pulled out with a “V” bottom:

V Pies at bottom

…And a month later we are into a very Strong move with %B above 0.5 around 90% for days:

V Pies at Top

The Jobs Market Report added to the enthusiasm and kept the Market up with yet another Month of >200,000 jobs, which is encouraging:

V Jobs

…And here is the long term view from 2011 to now:

V Jobs 2

Enjoy and Best Regards,

Ian.

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