Bottom Not Confirmed

Last week had a potential recovery set-up early on. Aaaaaand… no. Still down for the week. A lot.

The only real up-side was the finish on Friday, where the SPX crossed below the bear market threshold intra-day and reversed course to finish higher.

Bottom line, while this market is showing signs of reaching a bottom, it’s not confirmed (and, in reality, nothing is ever ‘confirmed,’ That’s just a nice way of saying a pattern ‘suggests’ a change has occurred.)

This week, keep an eye on the 3850’s, then 3800 if that level is breached. There’s not much support in this area. And let’s face it, sentiment is rough. If a push down starts, it could quickly devolve into another rush for the door as sellers bail.

Still, there are signs this is close to done. On the fundamental side of things, PE ratios are looking better. China suggests lockdowns are easing. The job market remains strong. And, up to this point, the markets have always recovered from events like this. So, there’s good reason to believe it will happen again.

Hang in there. These are not fun days to ride through the market volatility. But, as they say, the days are long and the years are short. This too shall pass.


Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by BigFoot), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from BigFoot. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. BigFoot is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the BigFoot’s current written disclosure statement discussing our advisory services and fees is available for review upon request.