The initial bounce after a big selloff day is the recouping of the panic selling better occurs near the end of the day. Yesterday’s hard selling showed confirmation the Bears were in control with the indexes doing bearish trend kicker’s and closing below the T-line. Today’s positive trading, unless it does a severe bullish move back up toward the open of yesterday’s candles, should be viewed merely as a bounce. The downtrend should be anticipated as long as the indexes do not show strong reversal signals and a close backup above the T-line. Be careful of any long positions and be oriented toward the short side.
August 11th Daily Market Comments
The initial bounce after a big selloff day is the recouping of the panic selling better occurs near the end of the day. Yesterday’s hard selling showed confirmation the Bears were in control with the indexes doing bearish trend kicker’s and closing below the T-line. Today’s positive trading, unless it does a severe bullish move back up toward the open of yesterday’s candles, should be viewed merely as a bounce. The downtrend should be anticipated as long as the indexes do not show strong reversal signals and a close backup above the T-line. Be careful of any long positions and be oriented toward the short side.