The Good and The Bad
First for the good:
- The Euro never turned red this morning during the test lower.
- It felt very gloomy this morning. That is usually how it feels at bottoms.
- Europe has been outperforming the past few days.
- I am seeing many more recommendations to sell and short than the first time we tested these levels.
And now the bad:
- The market got saved at support. I like it better when the market breaks support and then rallies. It leads to a better shakeout. I suspect that we still might need to do so.
- The ISE Equity only did not get to panic levels during the dip.
- Breadth is negative, especially on the Nasdaq.
- Goldman is weak.
4 comments:
Bottoms usually are accompanied with a spike in VIX. VIX has been relatively tame the past 2 days.
Tough call here.
Yes, but not usually on the retest. The retest is usually a calmer affair.
What is your price target on a bounce? I don't think this bounce will be very strong until we hit 1020 and lower.
I don't really have price targets, more time frames. Thinking a rally can go until expiration so that everybody's protection could go out worthless before the market takes another leg lower.
I too would have liked to see a better shakeout. I'm torn because I didn't love today's bottom but too many people are too confident about the downside.
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