Heavy Market Falls All Day Long

David Frost // Market Outlook

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October 7  

It was a nice blood bath today in the stock market.  The selling was large and often as compared to the norm.

The bond market rallied as expected on a day like today.

Gold didn’t do much, mainly finished undecided at best.

Oil was down hard in the afternoon and now sits at $88 and change.

Why was the market down today.  We’ll I can’t tell you what the pundits are saying, but I can tell you that the technical picture is very clear.  In last nights video I provided two indicators of trouble in the market.

One in particular was the Russell 2000 Index or the IWM Exchange Traded Fund.  I mentioned that the rebound we saw in this index was below par and likely in indicator that the market was not going to continue the rally if the IWM did not participate.

Remember, the Russell 2000 Index leads the market up and down.  This time it has lead us downward and that will continue or persist until it doesn’t.

Check out the video for an in depth review of the markets and the best road map I can provide.

About the Author

Trading and investing in markets is second nature to some, but a mystery to others. The goal is to provide a forum where everyday people aspiring to be part time or full time traders will learn how view markets differently and profit beyond their wildest dreams.

David Frost