Just like on Monday, there were a ton of bullish candlestick patterns made yesterday. This time there were a lot of harami and bullish engulfing patterns, and even a few morning stars. Yet, the prevailing trend on the vast majority of those stocks is still down. So I think it’s still wise to leave those downtrending stocks alone until they’re back in shorting position.
I still like the Vix for measuring market sentiment … if the trend is still down the Vix at some point will have to take out its March high, which means we’ve got some more selling to do before a real rally sets in.
Looks like you got your snapback rally and a possible double bottom (after Monday) to boot. Was the bump strong enough to make a believer out of you?
It certainly confirms that we’veput in some kind of bottom, but I still don’t see much I’d want to buy. There’s still lots of overhead resistance to chew through