Technically Speaking: What Has The Fed Wrought
Given the markets were closed on Monday, the analysis from this past weekend’s missive did not change. The important takeaway from that analysis was:
“A couple of week’s ago I discussed the rather clear “head and shoulders” technical pattern that we developing in the market. These patterns often suggest deeper corrections if they complete by breaking neckline support. A “gray rhino” if there ever was one.
The good news is the rally this past week terminated that formation by breaking the very short-term downtrend line.”
“While the market did nullify the more bearish short-term pattern, it is important to note that the market has not done much more than that.
All that really happened last week, was an oversold bounce on deteriorating volume confined to an overall market downtrend.”
Lance Roberts is a Chief Portfolio Strategist/Economist for Clarity Financial. He is also the host of “The Lance Roberts Show” and Chief Editor of the “Real Investment Advice” website and author of The “Real Investment Daily” blog and the “Real Investment Report”. Follow Lance on Facebook, Twitter and Linked-In