Back to 2006?
12th July 2008
We can only hope that someone turned the clock back to 2006 as the S&P 500 touched its 2006 lows on Friday. If the second half of this year turns out half as good as that one, there will probably be a lot of relieved investors, since that should just about break us even for the year.
Unfortunately, there are several reasons to think the stock market has NOT finished its fall. On top of that list is the fact that the DJIA still has 250 points to go to reach its 2006 low. While Friday’s 11,000 low has provided some support in the past, the fact that the market did not bounce strongly off these levels would lead one to believe that its only taking a breather. No time to try to catch the falling knife, even if it looks like its losing momentum. It can keep doing this for a while.
JD