It's like the old saying goes, fool me once -- shame on you. Fool me twice -- shame on me. This break below the 2002 bear-market lows has investors worried that they’re about to be fooled twice.
You’d think at current levels stocks should explode to the upside. We mean, they’re way undervalued, right?
But are you willing to make that bet?
That would be a bold move to say the least considering the slow methodical burn of the last 10 days doesn’t feel like the cathartic selling that marks an ultimate bottom.
So, is it time to take the money and run? If you do you can avoid another leg down, but with the Dow at levels not seen in over 10 years, you’ll also miss out if this is, in fact, the bottom and stocks skyrocket.
It’s a conundrum. At first we thought let’s turn to the charts but charts are always subject to interpretation. Then we thought, let’s turn to 7 of our favorite technical analysts – and see what they all have to say.
That’s what follows:
Bottom: John Kosar, President & Market Technician, Asbury Research
Bottom: Carter Worth, Chief Market Technician, Oppenheimer Asset Mgmt
Lower: John Roque, Analyst, Natixis Bleichroeder
Lower: Louise Yamada, Managing Director, Technical Research Advisors
Lower: Jordan Kotick, Global Head of Tech. Strategy, Barclays Capital
Lower: Andrew Burkly, Market Strategist, Brown Brothers Harriman
Lower: Dan Fitzpatrick, President, Stockmarket Mentor
As you can see 5 of the 7 chart watchers we contacted say we’re heading lower. The bearish analysts all point to past performance in which the S&P bounced against the 50-day moving average only to head lower.
Pete Najarian agrees with the majority. He says the market is testing critical levels and so far it’s been resistance.
However, Guy Adami is more bullish like John Kosar and Carter Worth. He says the S&P keeps testing 741 but not breaking below. “In the short term I think it’s going to hold up.”
As you can see we asked a lot of people. But which opinion matters most? Yours!
What do you think? Tell us now!
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Trader disclosure: On Feb. 24th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (MSFT), (PALM); Najarian Owns (GE) Put Spread; Najarian Owns (FCX) & (FCX) Calls; Najarian Owns (GDX) & (GDX) Short Calls; Najarian Owns (HPQ) Calls; Najarian Owns (JPM) & (JPM) Calls; Najarian Owns (MS) & (MS) Short Calls; Najarian Owns (MOS) Call Spread; Najarian Owns (X) Put Spread; Seymour Owns (AAPL), (EEM), (MON), (BAC), (FXI), (VIP), (MS), (SSL) Seymour's Firm Owns (FCX), (COP); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Macke Owns (MS), (TM), (DIS); Terranova Owns (DIS), (FXC), (XBI), (KCE); Terranova Owns (AMGN) & (AMGN) Puts; Terranova Owns (IBM) Call Spread; Terraova Owns Nymex MACI Oil Futures
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