A wild day in the market with the Dow Jones down 26 points (-0.16%) and the Nasdaq down 50 points (-1.18%)
As discussed earlier today, while the Dow had a moderate loss of only 26 points, the Nasdaq and the iShares Nasdaq Biotechnology (IBB) had massive losses of (-1.18%) and (-2.83%) respectively. In fact, IBB got pounded so hard that it stopped a few clicks shy of breaking it’s February 5th bottom. This is not a good sign.
What does it all mean?
First, as per our mathematical and timing work the Dow continues to perform just as predicted. The divergence you are seeing between the Nasdaq and the Dow is indicative of a major turning point. Either acceleration to the upside or a bear leg. Further, I believe that both the Nasdaq and the IBB are way oversold and due for some sort of a short-term bounce. Which would work very well with our overall investment thesis.
As mentioned so many times before, the bear market of 2014-2017 is just around the corner. If you would like to know exactly when the bear market will start (to the day) and it’s internal composition, please CLICK HERE.
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Stock Market Update. March 24th, 2014. InvestWithAlex.com Google