Tuesday, June 25, 2013

Have We Seen The Bottom?

RTS Long Term Dividend Current and Past Portfolios

Have we seen the bottom in the US markets for the current sell off?  Very likely yes, but the down side risk is still pretty high.  Yesterday, the number of new lows, for both on NYSE and NAZ, substantially increased to their highest levels for 2013.  Also, as of close of yesterday, three (SPX, DJT and RUT) out of five major indices are still trading below their primary uptrend lines.

What bulls need this week is a massive rally to push those indices above their primary uptrend lines. That is a tall order, but Fed's jawboning (causing massive short covering) might get it done by Friday.  Today is critical. If we get a solid green day (1/2 percent or better) accompanied by collapse of numbers of new lows in both NYSE and NAZ, I think chances would be excellent that the correction, for the US markets, is done at least in terms of price, but not quite there in terms of time.

Disclaimer: The views expressed are provided for information purposes only and should not be construed in any way as investment advice or recommendation.  Furthermore, the opinions expressed may change without notice.