Reply #1: Market Observation

[ozymandius]

Key Former Leaders Suffer Hangover After Dow 10,000 Party
BY MARTIN GOLDBERG

The US market enjoyed the euphoria of seeing the Dow surpass the 10,000 benchmark concurrently to a media blitz amongst major money management companies to once again draw in the public further into what on the surface appears to be a new bull market. The timing is right because those that were shaken out of the market are probably feeling lonely about not having their portfolio’s fully engaged in the big rally. In the meantime, the professional ranks would seem to be totally bought into the rally and so now with all their money in the market, all they can do now is talk and cheer.

However, it is likely relevant that all is not well with the market’s action. In fact there is significant evidence within at least two leading sectors of the market – financials and consumer discretionary - to suggest that the market may be beginning to roll over from bull to bear. For example, over the last 6 trading days (October 14th through 21st) the S&P Financials are down 4.2%. Similarly, the S&P consumer discretionary sector is down 2.2%. Some key “downs” are summarized in the table below:

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