Once again, we have to decide if a low volume rally means it is not sustainable or we are a frog sitting in a pot of water slowly coming to a boil. The latter means that before we realize it, the market is up 1000 points and your margin call does not care it was on low volume.
But since there are still no technical breakouts our old friend resistance still has our backs. Therefore, we are not frogs.
3 comments:
This week was a technical bounce. Last time in December 2007, after the "death cross" we had a similar 3-day S&P rally before the market plunged lower (it is buy the rumor [of a "death cross"], sell the fact kind of response described by the technicians -- right after the "death cross" there is usually a low volume dead cat).
Typo, should read: "it is sell the rumor [of a 'death cross'], buy the fact"
Looks like this time there were two bounces to the death cross. June was arguably the first.
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