The market is due for a rebound, but there has not been the type of selling that usually mark short term bottoms. The VIX has also not shown the kind of fear that would suggest a washout has occurred.
Though Fridays rebound was welcomed, I don't think this is the start of a new advance to higher highs.
Let's keep an eye on the Transports, as they have fallen faster than the Dow or SPX. Any return to new highs that doesn't bring all along would be reason for additional caution.
The same markets in California that got overheated are at it again. Partly could be due to less inventory.
Several radio ads run all day for seminars showing you how to FLIP HOUSES!!! De ja vous?
As long as interest rates remain low, that leaves little competition for stocks . I am unsure if this will remain a backstop as FED continues to back away from the QE. Usually interest rates rise in a bull market showing strength in the economy and demand for credit. And also re supplies the ammo needed to inject life into a flagging economy.
Not so this time.