Quote:
Originally Posted by petegz28
Weekly of the SPY closed right at the first Fibonacci retracement (25%). It broke through it but came back and closed at it. The low today, yikes, is probably or at least hopefully an intermediate bottom. I suspect we will see some consolidation over the next couple of weeks. Given the current economic environment I wouldn't expect too much more selling. The economy is strong and one article today tried to say "too strong" in which I call bullshit. We are coming out of the slowest economic recovery in our history. Things that are happening now should have been happening for years.
The one risk is that the Federal Reserve should have started raising rates a long, long time ago so now they may have to play catch up.
That being said, people freaking out over 3% rates on the 10 year bond are idiots.
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For anyone who doesn't know, Pete is referencing some terms relating to an approach to the stock market generally called "technical analysis". To a large degree it relates to trying to focus more on the psychology of the INVESTORS themselves, and not the actual fundamental strengths or weaknesses of the companies, or the economy as a whole. (that is a gross oversimplification).
Most experts don't hold technical analysis in high regard, though it has gained more traction generally over the last 10 or whatever years.
https://www.investopedia.com/university/technical/