- We saw panic in the most important stock in the market, Apple. It seems to me that we finally saw panic in Apple today after weeks of people trying to call a bottom. Volume is tracking higher than anytime in over six months. This more of one of those "you know it when you see it" type of calls as its difficult to measure panic in an individual stock.
- Put buying is high for a second day in a row.
- New 52 week lows have contracted from yesterday even though the market has made a lower low. this is a positive divergence.
- We saw several extreme readings yesterday that typically lead to a rally within a few days. Today's carnage only adds to those odds.
I have taken some trading longs in anticipation of some sort of a bounce.