Encouragement
Posted: 11 Jun 2012 11:53 PM PDT
Shares showed encouraging behavior last week, with the Nasdaq bouncing off its 200-day line. The key distinction was not the 200-day bounce, but that price found support so soon after it undercut the low of two weeks' prior, as seen in the below chart.
After a market has declined amid a cascade of negative news, these are the things that we look for to determine a durable bottom:
1) Ability to rise amid ongoing bad news.
2) Major accumulation days in the averages.
3) Basing and breakouts in leading issues.
Applying the above three steps to the current situation, last week the averages ignored the bad news out of Europe and the so-called fiscal cliff of higher taxes/lower spending slated to kick in later this year. In particular, prices rose when Spain asked for help.
As for major accumulation days, there has not been one in the Nasdaq, but there was one in the S&P last week. And a raft of glamour titles are building five-week-plus bases. This in itself is the most positive aspect of a market whose trend remains down . . . To continue reading, please click here.
Fund Prices2024-04-15
| Fund | Price | Day | YTD |
| G | $18.18 | 0.04% | 1.23% |
| F | $18.64 | -0.61% | -3.02% |
| C | $79.24 | -1.20% | 6.56% |
| S | $77.27 | -1.66% | 0.23% |
| I | $41.14 | -0.29% | 2.38% |
| L2065 | $15.75 | -0.94% | 4.19% |
| L2060 | $15.75 | -0.94% | 4.19% |
| L2055 | $15.76 | -0.94% | 4.19% |
| L2050 | $31.64 | -0.81% | 3.38% |
| L2045 | $14.44 | -0.76% | 3.24% |
| L2040 | $52.80 | -0.71% | 3.11% |
| L2035 | $13.96 | -0.65% | 2.96% |
| L2030 | $46.52 | -0.59% | 2.83% |
| L2025 | $12.97 | -0.32% | 2.08% |
| Linc | $25.35 | -0.25% | 1.78% |