AccessMyLibrary provides FREE access to millions of articles from top publications available through your library.
Byline: DAVID SAITO-CHUNG
Seventeenth In A Series
The market's action in the days before a bottom can be crippling.
In a single session, down stocks outnumber up stocks. Volume soars. Yet such selling exhausts itself. After the panic-stricken finally get out, new buyers bid prices higher and the institutional herd follows. A new rally begins.
As this column noted last week, the best way to spot the market bottom is to listen to the market itself. Wait for 2%-plus follow-through rallies among the Nasdaq, S&P 500 and Dow. Don't be fully convinced until a few sectors yield stocks with powerful breakouts. …