Clearly the markets did not like Bernanke suggesting Fed tapering will end. If you think equity markets are about fundamentals or earnings, then you don’t understand the role the Fed has had in propping up the U.S. markets. Bring in the taper and we have the largest loss since November 2011.
Selling heavy on Wednesday post FOMC, the Dow Jones formed a large bearish engulfing bar and hasn’t looked in the rear-view mirror since. Each dip was bought for the entire uptrend this year, but this is the first time a dip has been bought on a pierce below the 20ema, without making new highs. I think the yearly uptrend is over, unless Bernanke un-tapers.
I’ll look for sell signals around 15115, 15045 and 14871 (if there is weak pullback). Downside targets will be 14685 and 14475. Only a close above 15115 will change my bearish bias.
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Dow 390 Pt Sell Off After Large Engulfing Bar
Published 06/20/2013, 03:23 AM
Updated 05/14/2017, 06:45 AM
Dow 390 Pt Sell Off After Large Engulfing Bar
Dow Jones – Sheds 390 pts Post FOMC
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