<<But the pros won't rule out a reversal, as each rout to lows dating back to 1997 makes prices more alluring. The result, they say, could be a market that finishes the last full week of July unchanged, or with a minor loss.
"Valuations matter, and they have been improving," said Thomas McManus, strategist at Banc of America Securities. "Now we are starting to see bargains popping up, good companies available at prices you would not have considered possible in some time."
One example, he said, is Automatic Data Processing Inc. . On Thursday, ADP shares surrendered almost a quarter of their value, dropping to a 1998 low, after the No. 1 U.S. payroll-services company warned of slower profit growth ahead. >>>>>
But from a TA point of view, if stocks break below there 5 year low, wont that accelerate selling and create resistance for any rallies? |
