This Bear Market Is Nowhere Near A "Buying Opportunity," Says Rosenberg
Courtesy of Henry Blodget at Clusterstock
Some not-so-fun facts from David Rosenberg of Gluskin Sheff:
We went back to the history books and found that at fundamental lows in the S&P 500, whether they be in real bear markets or in severe corrections in a bull market, the index bottoms when it gets 13% below the 50-day moving average and 24% below the 200-day moving average. As of Friday’s close, we are talking about a market that is barely below the 50-day m.a. now and 5% below the 200- day moving averages.
Message — keep your powder dry.
[Note: The chart below from stockcharts.com suggests that Dave has transposed the current numbers: We’re about 5% below the 50-day and basically even with the 200-day…]
Image: Stockcharts.com stockcharts.com
See Also:
JPMorgan: Here’s Three Signs That We’ve Hit The Market Bottom
