It was a powerfully bearish week in US equities, with the sp'500 net lower by -121.9pts (6.0%) @ 1922 (intra low 1918). There is serious threat of a giant Monday gap lower... under the 1900 threshold, and testing the Aug' low of 1867.
*note the monthly candle, falling away from the 10MA (2037)... and I don't expect to see the market back above the 10MA until late summer at the earliest.
Suffice to add, with December closing bearish across US and most world equity markets, it was not surprising to see further declines this week.
Does it bode well for the bears for the rest of the year?
Yes, and no. I hold to my outlook of broad weakness into the late spring/early summer, perhaps to the sp'1600/1500s... but then rallying into end year. Indeed, I'm looking for marginal new historic highs in the sp'500 by end year to 2185.
Goodnight from London
*the weekend post will be on the US monthly indexes