Monday, November 5, 2007

Bear Market Ahead?

Looking at the SPY 15 year chart you can see that we're basically at the top. The highs we are at right now are back from the .com bubble back in 00/01. If you look closely you can see that we had a false breakout above those levels (red line) and pulled back immediately. It's ironic how we have a credit crisis right at the time of this top. Maybe this is what we'll be blaming the bear market on when we're actually in the middle of it. Leads me to believe that we might not have enough strength at the moment to really blast through these highs.

 

We have a lot of uncertainty and mild fear at the moment about the market. I think this will eventually turn into bigger fear and eventually full blown panic as we're watching the market decline more and more. I mean come on, this market seems to be held up buy 3 stocks, RIMM, GOOG, and AAPL. The market's been stuck at or around the same levels for about 2 weeks.

 

I think waiting for more fundamentals to come out is crap. We're putting up false hopes that the market will get better if we just wait one more day to see what it does. Well, I'm gonna be bold and come out and say I think we're in the early stages of a possible bear market.

 

spy 10 year chart

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