Market down lacking fundamental & technical support
02 May '07
3 min read
However, we could start to shake out some of the hedge fund longs if we go lower and this could create more selling than the market can handle. The key factor at the moment is that we fell over 200 pts in NY last week and the specs only went another 2% short. At this pace the specs could continue to be a factor for several more weeks as we try to reach an over sold percentage near 8-10%.
Hard to say where we are going to find a bottom, but it is safe to say, we have to reach a level where the specs and funds stop getting results to the downside almost on a daily basis. A sideways consolidation is key, but we are unable to start that until we see a strong rebound that can hold and that might take a bit longer?
marketing@alchempro.com
