It Is Good To Be (Almost) Home...And Signs of a Bottom?

I am in Dublin airport right now writing this post. It has already been a long day on the bus from Northern Ireland.

I have a flight from Dublin to Philly and a long layover than a flight to San Diego.

I have a ton of email and work to catch up on so I am actually looking forward to getting some work done.

As much as I do not want to talk and write about the markets, it feels like it will be consuming me for the next few months at least and on this blog.

Friday was another awful day for stocks.

Nike was the victim Friday and the stock is now down 60 percent from its highs and has shedded $200 billion in market cap.

It is no longer just tech that is being hammered.

I see McDonald’s starting to roll over now as well as Mastercard.

There is nowhere to hide as this bear market works its way through the markets.

Next week traders will be watching this chart of the S&P:

From The Chart Report on the above chart: The S&P 500 just logged its third straight quarterly loss for the first time since 2008. Matt points out that it’s currently testing its 200-week moving average for the first time since the pandemic. We actually closed slightly below it today, so buyers will need to show up soon if we’re going to have a 2011 or 2018 scenario. If we extend below it, it will be a major red flag. Either way, keep an eye on how this test plays out in the coming weeks.

I am looking for signs of a bottom but I see more signs of excess.

I don’t see how we bottom in the technology sector when the worst performing manager in growth technology – Cathie Wood – is launching a new public/private mutual fund to retail investors. A better sign would be Cathie closing up shop or being unsuccessful raising capital for this new product.

With so many technical support levels broken in technology indexes and stocks, next week could get ugly.

I just want to be prepared.