- Bearish chart
The S & P 500 closed down 1.19% Monday on any number of growing anxieties. We are oversold on a short-term basis but the RSI line is picking up momentum on the way down. Not good. Besides the 50 day moving average has been convincingly broken.
Interesting enough Berkshire Hathaway stock is now down for the year. It kind of looks like my broken position in Wells Fargo which is also one of BRK.A’s largest positions. The last year Buffett’s Berkshire Hathaway was negative and the S&p 500 had positive returns was 1999. There was also massive Internet mania going on that year and 2000 marked a historic top. That year Berkshire was down 19.9% versus a positive 19.5% change in the S&P.