Strong day yesterday…today’s pre-market not so good.
Even with today’s open, we believe that near -term, another A LOW was put in. This does not change the big picture and that is just about everything is trading below longer term moving averages, leadership is almost nil and suspect there is plenty more time and price to work out these ugly technicals but even bearish markets stop going down for a bit. As we stated, the DOW was 900 points below the 200 day average…very stretched from the norm. The last A LOW we called on October 30, led to a strong few days before rolling over again. Again, this does not change the big picture.
Of course, we walk right into a gap to the downside as the prez raised the rhetoric on more tariffs while more AAPL downgrades show up…and if the recent lows get taken out, the nausea will become more nauseating.