Markets tried to rally Friday as stocks pivoted off the lows to close virtually unchanged on the day. Some of the late day move was likely option related given it was May option expiration. On the week, however, the Dow Jones Industrials (DIA) fell nearly 3%, even given the late day rally. This marked 8 straight down weeks in a row for the DIA-the longest such losing streak since 1923 (almost 100 years ago!). At some point a sharp counter-trend rally is likely in the offing.
Trying to pick an exact bottom is difficult in any market environment, but even a tougher task now. The one thing for certain is that as stocks continue to fall week after week, they are getting closer to the ultimate low. So far it has been wise to be wait to be a buyer given that stocks are at back trading at the lowest levels in the past year.
