Friends emailed me their thoughts premarket, both theirs and some “gurus” they follow.
1295! 1288! 1303! 1305!
They were sure fired up about our promising bounce.
The higher numbers were suggested by their gurus as where we were headed today. I wondered what charts theyÂ were looking at.
The 1252 was a lower low and the reality of today’s action.
Bear markets are characterized by sharp counter rallies and then a renewed plunge to a lower low.
Every call for “this is the bottom” is only a guess.
Can it get more oversold? Absolutely.
Only the collective mind of the market knows what number needs to be tested before it can put in a significant bottom. Like some people, the market has a will, a purpose, a desire that will not be denied.
Anyone who thought this would be a narrow range day pre-holiday got a surprise.
Gap up, hard down, reverse up to the open price area, and settle back to a typical retracement.
Just another day of work at the office.