Stock Market Analysis – A Bad Day At The Office

Well yesterday was a bad day at the office.

In fact the last 7 days, were bad days at the office with 6 down days and yesterday being punishing.  Especially if your office is the Trading Floor.  Even more so if you were buying stocks and going long.  But if you are a member of the Liberated Stock Trader community, then it might not have been so bad, in fact from my previous market analysis you would have known that this was probably going to happen.

Yesterday was particularly Bearish, with the major US indices averaging over minus -3%.  This does not happen often.  SO what does this mean for us.

Firstly it signifies the continuing formation of the Head and Shoulders Top I discussed in a previous post.

Secondly, we may get a small bounce upwards today, and tomorrow, but this is unlikely to continue upwards for long

Thirdly, if the support lines formed in most indices at the May and February lows is significantly breached we should expect some further strong downside to the market, as I discussed in this post called Double Dip Danger.

Happy hunting and stay safe.