This week's market action can best be described as "going from bad to worse".
Monday, after early declines, both the S&P 500 and Nasdaq rallied late. But Tuesday both indexes slumped and undercut the lows established Monday. The rally day count had to be reset to zero days.
Wednesday was better but again, a potential rally petered out and undercut Tuesday's low. Again, the rally day count was reset.
Thursday the markets rallied and ended the day up approximately 3%. But Friday the indexes gave all their ground back with the S&P 500 dropping 3.6% and Nasdaq dropping 4.2%.
At weeks end we'd again undercut our previous low and reset the rally day count to zero.
How bad is this market? Consider this:
Needless to say, we are very happy to be on the sideline through this market bloodbath. When the market finally does stage a convincing rally, stock prices will be at more reasonable prices.
As always, please contact me with any question.