Market Update - 6/13/07
Wow, what a day for the market. All the major indexes erased yesterday's losses! It was a "red-letter day" for the Dow achieving it's best one day advance of 2007. But from a technical standpoint, the market continued to weaken. Over the past two days, more stocks have declined than advanced. About an equal number of stocks hit new lows today and yesterday then hit new highs even though the markets are only points off their 52-week highs. This suggests that while the "weighted averages" rebounded, more than half of all the stocks traded on our exchanges are still down after two days of relatively volatile action. Furthermore, increasing volatility typically signals a peak or trough in the market. It's still too early to tell if the bear market is starting, but today's action reinforced the recent technical weaknesses in the market.
- Matt's blog
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