More Constructive

We finally saw some signs yesterday of investors throwing in the towel:

  • The ISE equity showed the most put buying since early June.

  • The VIX popped

  • The TRIN reading was extreme

  • We broke below widely watched support levels that likely cleared out some weak hands.

All this should lead to some sort of a bounce, which we are seeing this morning. Its possible that this bounce will be the beginning of a bottom but the intermediate term sentiment and oversold  indicators are not extreme enough to have  a strong conviction that this was  a bottom.

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