S&P 500? Will The Market Continue Down?

I wanna keep this light but … it’s kinda tough when there is so much non-growth oriented (see, I avoided saying ‘negative’) news on the economy.

I have been looking for a bounce in the stock market, maybe back to 1000-1050 in the S&P500 index.  It is looking like a tough fight as the overall trend in the market is down.  One of THE most important things you can learn as an investor is (memorize this):

YOU MAKE MONEY IN THE STOCK MARKET BY INVESTING WITH THE DOMINANT TREND IF YOU INVEST AGAINST THE TREND YOU WILL LOSE MONEY.

The we are in mess started with real estate and real estate has to start a recovery for us to be heading back to an even playing field.  And real estate market is not coming back anytime soon.  I know a lot of Realtors (I am a Broker myself).  Most of them are good people.  They made good money in the boom.  Nearly every one is hurting now.  A good number of them think properity is just around the corner….NOT!

Thank you Mr. Hoover but, I don’t think so.  Futures are looking like late 2010, maybe even 2011 before that happens.  Sometime preceding that is when the stock market will have truly bottomed and a new bull will begin.

The S&P500 COULD really get to 500 before all is said and done.

Look out below.

The Stock Market Conundrum

…is driving me nuts.  Anyone else out there feeling the same way?  It appears to be trying for a double bottom (factoring in last Friday’s disaster).  This would be a good thing according to the die hard chart guys.  Truly, if we can rally into the end of the day (the Dow and S&P averages are already up off their lows), this would be a good sign for the near term, maybe into next year …  who knows.

My general opinion is that even if we do rally today and into the rest of the year (even early next year) we are still in for a nasty ride, this is not EVEN going to be the end of this bear market. Read more