Wednesday, May 17, 2006

Ouch!

Another down day, this time due to higher than expected headline and core CPI numbers (0.6% and 0.3%, respectively, versus 0.5% and 0.2%, respectively forecasted). The Dow ended the day 4.3% below it's 52 week high set within the past couple of weeks, The Nasdaq and S&P are 7.5% and 4.3% below their 52 week highs.

As you can see, the Nasdaq and S&P are now both oversold -




The Dow remains slightly above oversold territory -



Meanwhile, the VIX hit it's highest levels since October 2005.



So what next? Although I believe in the near-term, we could be bottoming out, I continue to be less optimistic about the longer-term prospects. Be careful out there, and I'll see you tomorrow.

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