“While we are seeing big swings in both directions, markets are not making a forward progress and that’s likely to continue over the next few months,” said Maris Ogg, president at Tower Bridge Advisers.
“We have a combination of further selling by mutual funds to cover taxes after big losses in parts of their portfolios and banks revaluing loans in the energy sector, both of those factors will keep the markets from rebounding for few months,” Ogg said.
Lets take a look at FAZ, the reverse indicator of QQQ.
FAZ says up day tomorrow, which means for us, a down day as this is a reverse ETF, Bear x3.
What about the market as a whole over the next few weeks? In order to view this, we switch our view from daily QQQ to Weekly QQQ:
There looks like two half assed candles showing a possible reversal. I wouldn't read too much into that. I on the other hand read fundamentals when it comes to this: Do I think that there is one big massive fore shock of a drop in the market and then its back to rosy fields and resumption of what it was like before? Does that make any sense? The big drop showed the massive weakness in faith in the dollar, global economic weakness and in the market itself. The big drop in itself is not an isolated event. If anything, at the very least, there is going to be another dip as investors are looking for a double bottom to reaffirm that we are going to continue to climb.
Watch out, I expect this big dip to occur sometime in the next 2 weeks.
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