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After the 20-Plus Point Decline, Then What?
Yes, the vigilantes are having a field day with all the negatives again after a down week. That is always the case when a week of down more than 20 points or 2% in the S&P 500 occurs.
Rather than joining with them in exacerbating positions against the drift I often have been known to take a position apart from their pessimism. And it's always good to count such meetings of David and Goliath, viz:
|Week of Decline||Change That Week||Next Week||2 Weeks Later||3 Weeks Later|
Note that there have been about four declines of 20 or more a year since year-end 2002. In 2000, 2001 and 2002, there were some 20 declines of 20 or more each year. You be the judge.