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:

Chaos! said...

Bottoms usually are accompanied with a spike in VIX. VIX has been relatively tame the past 2 days.
Tough call here.

Tsachy Mishal said...

Yes, but not usually on the retest. The retest is usually a calmer affair.

Market Owl said...

What is your price target on a bounce? I don't think this bounce will be very strong until we hit 1020 and lower.

Tsachy Mishal said...

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.