It’s official! The broader market has given back 5 years of gains today as the relentless selling pressure continued, even into the close. Take a look at the chart below and you can see the retracement of that monumental 5 year bull run. Now, imagine yourself as a “long-term” investor and seeing all your patience and buy and hold over the past 5 years blowing up in your face. Granted, technical trading isn’t the only way to go, but I have yet to find a buy and hold investor who shorts anything other than themselves by not shorting at times.
We’ve really never gotten that capitulation day that is spoken of so much lately but two days of hard selling sure does smarts. The broader market is near the level where the dot com bust found some footing and started to climb higher. The question remains to be answered is whether or not the crash of ’08 will find some footing here as well. There are 6 trading days left in November and that will complete the monthly candle that is now currently at 11 year lows.
Tomorrow we get the CAD Consumer Price Index (CPI) and some Fed speak from Plosser. Remember that tomorrow is options expiration. On the earnings front, only HNZ is reporting.