NEW YORK (TheStreet) -- TheStreet's Debra Borchardt spoke to Mark Newton, chief technician of Greywolf Equities, about where the market may be headed in the next couple of months.
Although equities looked like they might bounce in early trading, they have since turned lower, adding to the huge Thursday losses. Borchardt asked, is this now a "buy the dip" or "sell the rally" environment?
Newton is siding with the latter, saying he now feels bearish over the intermediate future. He points to the dying momentum that began in late May.
He also said post-election years are historically bad for the markets and he thinks it may be a good idea to avoid buying the dips until around September or October.
June has statistically been a pretty bad month for markets over the last dozen years or so, which is why Newton isn't exactly surprised by the selloff.
If the markets fail to recover in the next five trading days of the month, not including today, the seven-month streak for positive monthly returns will be snapped.
"We have seen a bounce in housing, but there are no real signs of real growth
and unemployment is still high," he concluded, regarding reasons as to why we still need help from the
-- Written by Bret Kenwell in Petoskey, Mich.
Bret Kenwell currently writes, blogs and also contributes to Rocco Pendola's Weekly Options Newsletter. Focuses on short- to intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.