OT..in some respects, yes. Momentum up, or momentum down continues a trend, irrespective of external factors, until that trend ends. It ends by meeting or over reaching fundamental values on the downside, or an exhaustion point on the upside.
Lowering rates is a catcha twanny two...you see it in the press and market activity most every time..pre-lowering, hype about what a good and necessary thing it will be...and after...oh, golly gee..they lowered rates..we must really be in trouble...and then the cycle begins anew.
Many blame Greenspan for the market troubles..I don't live in that camp.
By many metrics, the market is over valued, even at these levels.
The economy doesn't appear to have reached it's nadir.
There are signs it might be close, maybe yes, maybe no.
There is room to the downside, IMHO.
If buying starts again at any point, however, it will stabilize or resume an upward trend.
That's what makes it all interesting.
All IMHO>
Best, Savant |
