By Investor’s Yak
Homebuilders have now declined below both the 50 and 200 day moving average (DMA). Perhaps soon, the bearish “Death Cross”, distinctive of all the other sectors and major indices, will characterize Homebuilders too. The following represents the correction percentage of major market indices from their most recent high prices:
- Down 12.5% (S&P500) – just 2.5% above the October 2013 low price
- Down 16% (Dow Jones Industrial Average) – below the October 2013 low price
- Down 18% (NASDAQ) – 4% above the October 2013 low price
What does this all mean? For the right now here today, it means the market is sick. However, if the market attempts a fall rally later this forth quarter, it may first pull back to the 2013 lows. Watch for market reaction during the October events listed below. These events may offer an opportunity to find strong stocks during pull backs prior to the next rally.
Event calendar affecting markets in October
8 October – FEDs September Meeting Minutes
9-11 October –possible IMF announcement of China as a world Reserve Currency
27-28 October – Fed meeting
29 October – Third Quarter GDP Report
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