Bulls Only Holding the Long Road Now

NASDAQ MarketSite TV studio (Photo credit: Wikipedia)

Market behavior during the last days, has come to confirm our fears. The SP-500 andthe Nasdaq broke its support levels a couple of days. The DJ-30 was made yesterdayand the volatility has reached levels not seen since the beginning of the year.

Now our concern is not whether the market will correct or not, but what will be the magnitude of the correction. A poor earnings season, along with the growing problemsin Europe and the changing economic information in the U.S., are ingredients in a down market.

Until now, the growing market trend over the medium term remains intact. For now, we are facing a market that ran out of steam and is taking a break. At least, that point outthe technical indicators.

If the correction occurs primarily in commodities, especially in the Oil, we will see arapid recovery in consumption and a new momentum in the market. If Europe fails to properly handle this crisis and in the coming weeks this situation deteriorates, we couldface a drop in the global economy. This obviously would have a negative impact on Wall Street.

Our portfolios have taken a series of defensive measures in order to protect gnanciasobtained and achieve some benefit of this correction in the market... Continue to read.

Related articles

• And Now: What Else? (stocktipsinvestment.blogspot.com)
• Morning MarketBeat: Treasurys Fool the Stock Bulls Again (blogs.wsj.com)
• BOB DOLL: Don't Get Confused, This Is STILL A Bull Market (businessinsider.com)