Business Insider: Enjoying The Suckers’ Rally?
Good article brought to my attention by my friend Greg…
Historically, advances of the size we’ve observed have only “stuck” when the major indices had already advanced past their 200-day moving averages by the time stocks were about 20% off the lows.
There’s a reason for that. During a true bottoming process, favorable market internals are typically “recruited” even as the market is moving down or sideways. Investors work through the ebb-and-flow of information through repeated cycles of enthusiasm and disappointment. To expect the disappointments to quickly come to an end and to be replaced by clarity is to expect something that is not characteristic of historical experience…
As you can see from the links below, neither of the major indexes are close to trading above their 200day MA.
