TheStockTalk.net

I’m sorry for the problems with the site over Thursday/Friday. I was working on updating the site and managed to run into some problems. Never the less, I managed to fix them all and here we are!

So I’ve got the percentages of the pops and drops of the Dow and Nasdaq during this bear market above. The Dow has been averaging around 5.5% every rally and 14% for every correction while the Nasdaq has averaged 8.5% and 15% respectively.

I think it is definitely a bear market rally in the Dow, but in the Nasdaq it looks as though a double bottom could be forming. The chart is the only reason why I hesitate to say the Nasdaq could have hit a bottom. We are looking for new companies with new products to be taking center stage in a legit bottom but we are still seeing the leaders of yesterday make the big moves.

Earnings are going to direct the market this week and so far earnings have been better than expected. I’ve been looking at the ETF “ROM” which is a long on the Nasdaq. It is near all time lows and looks to be forming a base. I would keep an eye on that and continue to watch your long candidates for a follow-through buy signal which would be 1 or 2% above the breakout point.

I hope everyone has a great Monday and there will be more after the market’s close!