Stocks Continuing To Fall, Technical Weakness Persists

The Fortune Teller Speaks:
Stocks will likely continue to fall like rocks today based on yesterday’s bearish performance (at best) and continued technical weakness.

All Eyes on Wall Street:
All eyes on Wall Street appear dazed and confused as investors continue to digest yesterday’s stock market bloodbath. As I have said for a long time (I just happened to be a day off), this stock market cannot continue to go up forever, and it looks like the bulls are wounded for now. Additionally, yesterday’s corrections and potential declines today seem to largely be driven by technical weaknesses, as economic data has not been disappointing as of late. So considering that the stock market cannot rise forever and considering that investors may be finally figuring that out, I think we will see further declines today.

Today we are also due out for a NFIB Small Business Index report, a Retail Sales report, and an Import Price Index report at 8:30 AM EST; a Business Inventories report is due out at 10:00 AM EST. Retail reports are always heavy hitters in terms of economic data, and the bulls will be looking for any sign of good news, especially considering that today’s retail data will largely reflect Holiday 2013 spending.

Hindsight is a Beach and We’re Playing on It:
Yesterday we got absolutely obliterated as I missed the major downturn by all three major indexes. The S&P 500 (SPY) lost 1.26%, the Dow Jones Industrial Average (DIA) lost 1.09%, and the NASDAQ 100 (QQQ) lost 1.47% after a hard day for the bulls. So much for more stock market records, but I believe we will do better today. As I always say, I do not care where these stock markets go, just as long as we are right! Better luck today.

My secret sauce is deep red, may the bears be with us!
This stock market forecast is for educational and informational purposes only. It is not intended to be investment advice nor an investment recommendation. Past performance is no guarantee of or indication of future performance and your performance may vary widely from any that may be indicated in this column. There is risk of loss in all investing and trading activities and you should consult your financial adviser before making any investment decisions.