Posted May 20, 2012 13:48
The much anticipated Facebook IPO finally came…and went. The hype of the IPO was overdone, as Facebook closed the day null… that’s right null. Everyone, including me, estimated that Facebook would at least close the day up 25- 30%.
The hype going into this week was only Facebook. But coming out of the week, many investors will focus on the massive sell-off that occurred this week. The market was just terrible. Europe was the main leader of the sell-off. Worries over Greece rattled the market.
Looking at the technical side of the market:
- Market is oversold
- The market is due for a bounce
- A few months ago, every analyst was saying that in order to have a healthy market, we would need a 5-7% correction. Well, we had the correction, so according to the analyst from a few months ago, the market should reverse trend and go back up.
- The Euro got crushed, due for bounce.
In my opinion, the market will go back up. I believe that there will be a 3-5% bounce. Let’s just hope, Europe settles out because if things get worse, it is still possible to get the 3-5% rally, but we could endure a much greater sell-off.