Time to get bearish usually isn't AFTER a decline like we have witnessed, it is always a move between extremes, and we've reached an oversold extreme, 4 90% plus downside volume days in last 2 weeks, may have exhausted supply for a period.
Should we get signs of enthusiastic buying, such as a 90% UPSIDE volume day, ST bottom could be in. Shouldn't prices be driven low enough after what we have seen? Playing for our "guaranteed" Monday rally day was not a crazy idea. We also witnessed how in some types of stock movement STOP LOSSES cannot protect you.
It may be now apparent that the EASY money is off the table, and the rally should it go forward now has certain established RESISTANCE areas formed from the decline as well as becoming more a stock pickers market, not a throw a dart market pickers.
I may throw some charts up after a bit, take a look at a few areas.
Welcome to my blog Aaron, my good friends saavy 89 year old father. This guy is amazing!
Expect maybe some weekend news or pre mkt news MOnday in attempt to lift stocks, but you need know little more than when stocks reach extremes,
in this case severely oversold (ON SHORT TERM BASIS)
they will try to rally, in opposite direction.
Seeing 4 such heavy selling days after 14 months of rally is enough for me to signal some change in the market behavior, and the end perhaps of all the boats floating upstream.....let's take it one day at a time.....for sure, the market better rally next week.
Duratek
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