Saturday, January 25, 2014

Perspectives On Friday's Sell Off [SPDR Gold Trust (ETF), SPDR S&P 500 ETF Trust, iShares Silver Trust (ETF), SPDR Dow Jones Industrial Average ETF, iShares Barclays Aggregate Bond Fund, iShares FTSE/Xinhua China 25 Index (ETF)] - Seeking Alpha

Perspectives On Friday's Sell Off [SPDR Gold Trust (ETF), SPDR S&P 500 ETF Trust, iShares Silver Trust (ETF), SPDR Dow Jones Industrial Average ETF, iShares Barclays Aggregate Bond Fund, iShares FTSE/Xinhua China 25 Index (ETF)] - Seeking Alpha



This is an outstanding article which tries to make sense of a big -318 point down day on the Dow which was already preceded by two -100+ days over the last two weeks.  Has a bear market started?  The author does a good job of drawing rational conclusions.  For example, not all asset classes are going down.  MDY and IWM, mid-caps and small-caps held their 50 day lines.  The S&P is still above its 100 day line which served as recent support during minor recent pullbacks. So, we are probably just experiencing a correction, but we must still keep monitoring the market in various ways to know when to head for the hills.

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