Ian Woodward's Investing Blog

Stock Market: It’s the Real Thing!

We had a follow through day to the downside, and the odds favor “The Real Thing” over a “Knee Jerk” as I suggested as the alternatives in last night’s Blog Note.  I will treat this as an update to yesterday, so I will show you the charts with very little verbiage:

Real Picture

Ten Days Gains were lost in just two days on most Market Indexes:

Real Indexes

There is an inviting Gap between 3021 and 3076 that is below here and needs to be filled on the Nasdaq:

Real Nasdaq

The Russell 2000 (RUT) took a big hit these last two days with 7 Buckets down:

Real RUT

…While the VIX is inching up as you would expect.  It needs to get above the 200-dma at 17 to cause fireworks:

Real VIX

Since the two big days at the turn of the Year we have been waiting for the Big Guns to produce heavy selling and now we see it:

Real 8

The Leaders are getting Trounced:

Real Acc

7.2 Buckets in two days is hard to recover from, but don’t count out a Bounce Play.  The quality of that Bounce will tell us a lot:

Real Pat2

As we would expect, there is a big shift to the downside on the % of Stocks in the Lower Buckets:

Real Pat1

The majority of the evidence points to the downside, but sometimes the Market will fool you.  Stay alert, and Keep your Powder Dry.

Best regards,


Copyright © 2007-2010 Ian Woodward
Disclaimer: Commentaries on this Blog are not to be construed as recommendations to buy or sell the market and/or specific securites. The consumer of the information is responsible for their own investment decisions.