Bounce over and it was fun while it lasted - for the 5 traders that were able to partake.
Volume during the 900 point day was merely above average. Volume the next day, when the market gapped up to its high before failing was higher. And now volume on a 733 point drop was the lowest of the three. Yawn city. Just look at yesterday's blog post for more on that.
I do believe the bear market - or this phase of it - ended last Friday but that does not mean there cannot be a lower low. Sounds counter intuitive, right? Well, yes, it does but if we differentiate between a bearish trend and the transition period from bear to bull we will understand.
In the transition period, or trading range, the market goes up and down. No news there. But as it goes up and down it may be prone to overshoots of developing support and resistance. Therefore, we may see a lower low even though the bulls and bears are on equal footing.
Perhaps the Elliott-heads out there can explain that Wave 2 can undercut the start of Wave 1. I know waves can be funky in corrections, too, but Elliott is not my main thing. As Dennis Miller might say, that's my opinion, I may be wrong.