(in)famous last words...

Emerging Growth - November 19th 2008

Although today proved to be another unsettling day for the markets, the Dow is still holding above its October 10th low. The bottom line is the market is still bouncing along the bottom. As I told you in last week’s Flash Alert, the declines on November 13 were a successful “retest” of the market lows, and the story was the same today.

The S&P shed 6% to close at 806.58, which pushed through the previous low, but since the Dow is still holding firm I do not consider this an indicator of further declines. I have said before that we are bouncing along the bottom of this bear market and will likely see several “retests” before the recovery, and this is part of that trend.

Blue Chip Growth - November 19th 2008

In my Flash Alert to you last week, I told you the declines on November 13 were a successful "retest" of the market lows. The story was the same today, as the Federal Reserve sharply lowered its projection for economic activity for the rest of this year and into 2009.

The Dow slumped in late trading to close down 5%, or 427 points lower, at 7,997.28. While this is the first time the index has closed below 8,000 since 2003, it still has not pushed through the intraday low of 7,773.71–which I still consider the bottom of the market. The S&P shed 6% to close at 806.58, which pushed through the previous low, but since the Dow is still holding firm I do not consider this an indicator of further declines. I have said before that we are bouncing along the bottom of this bear market and will likely see several "retests" before the recovery, and this is part of that trend.