Stocks continued to slide last week. The S&P 500 shed another 68 points after having posted a new 4-1/2 year low, the Dow lost 695 points and the Nasdaq composite gave up 75 points. The Nasdaq skidded to a new 5-year low. Gold was a bit boring as we might expect, given that the central bankers aren’t about to let it get interesting, if they can help it. Meanwhile the dollar remained weak and near its recent lows.
So much for bottoms. The S&P 500 barely even blinked when taking out last September’s low. Of course that post-holiday upsurge was nice but once again, the underlying bearish forces took control and drove the market still lower. And the market didn’t care too much for all the pundits crying “Oversold! Oversold!”. There’s no such thing as oversold in a bear market. We were “oversold” when the market was 10-15% higher than it is now. So what?