2/22/16
WHAT KIND OF A BOTTOM?... It's looks like the market has put in some kind of a bottom. That will be especially true if 50-day moving averages are exceeded. But what kind of a bottom? So far, all we can say with some confidence is that stocks have put in a short-term bottom. My recent messages, however, have shown that several U.S. sectors and indices, and well as the FTSE All World index, have reached important support levels where a more important bottom could start to form. Those stock indexes are also in very oversold conditions. New signs of strength in commodities, combined with stronger emerging markets, would also take a lot of pressure off world markets. Some indicators shown in my Saturday message also suggest a stock market that is trying to form a bottom. It will have to do a lot more on the upside to strengthen that view. But it's off to a good start.
By John Murphy
