Quietly Strong Selling Wave
Stocks have quietly seen a fairly strong selling wave over the past eight days. Coincidentally (or not), that has been ever since the European Union announced their latest rescue attempt from European Stability Mechanism. After that one huge rally day, stocks have not behaved well and after today (Thursday), they have given back the entire rally.
From my seat, the stock market is at an interesting juncture here. I wouldn’t say “critical”, but the bulls need to step up here and make some noise. Closing below the low we saw this morning, say 12450 on the Dow, would likely set off a quick and sharp multi hundred point drop before the next opportunity came for the bulls. Right now, the bulls have fought off the bears for two straight days. It’s for them to make some headway over the coming few sessions.
The latest Streetsmarts is out and if you subscribe to that letter (http://www.investfortomorrow.com/newsletter.asp), it should be in your inbox. Otherwise, I will post it here over the weekend.
Have a great weekend!