Nothing like an ugly sell day followed by futures that were down last night…followed by another reversal with a nice gap to the upside this morning.
Ping pong. We suspect there will be more of the back and forth but all expect to find areas to exploit. Hopefully!
We do not like gaps to the upside because it gives the big money the chance to sell into…if markets want to ultimately go lower.
We have nothing new emerging…and nothing new submerging. Again, back and forth. Be patient and know markets will come out of this…but thinking there is more to come.
Keep in mind again that more than 60% of the market is below resistance and the 50 day moving average. No chance of going higher until that dynamic changes for those areas and those stocks. This includes Europe, real estate, utilities, consumer staples, housing, oils, energy and a few other areas. Many oversold and can bounce but we like major uptrends…not the opposite.