NASDAQ throws in the towel and sets a new bear market closing low below the November low

That's it. NASDAQ "officially" set a new bear market closing low of 1,299.59 below its closing low of 1,316.12 on November 20, 2008. As a minor technicality though, the NASDAQ intraday low of 1,298.33 did not fall below the intraday low of 1,295.48 on November 21, 2008. Minor detail.

So, NASDAQ is now officially out of its trading range in resuming its bear market by setting a "lower low."

When will the market finally bottom and turn up again in a new bull market? Simple. It will do so as soon as insiders and others begin to detect the money flow in the real economy starting to improve. That will happen months in advance of any official reports. The government stimulus money could start to do that soon, but initially any new government spending will be offset by further deterioration in the economy. It will take some time before the stimulus money flow grows large enough to exceed the recessionary contraction of money flow that we are currently experiencing.

-- Jack Krupansky