Reuters Summit-More downside seen hounding U.S. stocks?|?Reuters 

Reuters Summit-More downside seen hounding U.S. stocks?|?Reuters

(For other news from the Reuters Investment Outlook Summit. updates declines of major indexes)
NEW YORK. U.S. stock investors may have to brace themselves for what could prove to be a prolonged downbeat market as major indexes test key technical support levels. a leading market technical analyst said on Tuesday.
Louise Yamada. founder and managing director of Louise Yamada Technical Research Advisors. told the Reuters Investment Outlook Summit in New York that major U.S. stock indexes could well see further downside.
Even if the stock market entered a period where it could be deemed to be in oversold territory. Yamada said there was a possibility for more selling pressure to jolt stocks before stocks attempted another breakout higher.
"During a bull market you can get away with saying. the market is oversold. you want to buy.' Oversold conditions are holding a little longer than they have for the past three years. So we have to stay alert to the fact that we may be in for a more corrective trend." said Yamada.
"At a minimum we suspect that we're going to experience a corrective trend. but whether or not we go to a bear market. which you define as 20 percent or more down off the highs. it isn't clear yet. It's a possibility. We can go to a cyclical bear market. within a structural bear environment."
Gains that the stock market registered earlier this year. coincided with a declining number of stocks hitting new highs -- a bearish technical signal.
Even though stocks have fallen sharply in recent weeks and Wall Street thinks the stock market is in a funk. individual investors who focus on picking stocks for the long-term are still poised for growth.





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