Chris Ciovacco

Are Stocks Making a Major Top?

We should point out some short-to-intermediate term concerns, which have potentially bearish implications. The S&P 500 faces several forms of possible resistance in the coming days and weeks: (1) The trendline from the October 2007 peak, (2) the 500-day (yes, 500-day moving average), (3) 50% retracement of the bear market losses from October 2007 to March 2009 at 1,120 (a common retracement/resistance area), and (4) overhead trendline from current rising trend. These areas may not be show-stoppers, but they could cause some frustrating times for investors. We have a PDF available that may help investors better understand these concerns - you can use the link at the near bottom of the article (above) to access the PDF (click on the word "page" in the article). We do have concerns about the market - concerns about further corrections, not necessarily the end of the bull market, but concerns nonetheless. We have numerous fundamental concerns as well.

Stocks May Not Fully Correct Until 2010

Note: We have incorrectly labeled 1942-44 chart above as being the "S&P 500". It should be labeled "Dow", since it is a chart of the Dow Jones Industrial Average. We apologize for the error.

Market Behavior Following Consecutive Fed Rate Cuts

Thank you for the kind words. Yes - you may use the article for your students. CG Ciovacco

Market Behavior Following Consecutive Fed Rate Cuts

Thank you for the kind words. Yes - you may use the article for your students. CG Ciovacco