After an ugly week it is not unthinkable there might be a bounce. However I would not think now is the time to bottom fish or buy the dip. The trend is volatile and many world events very negative.
Yesterday, the major averages sold off hard at open and after a feeble rally attempt sold off for the rest of the session, finishing at their intraday lows. The Nasdaq (QQQ) led the way down with a loss of 3.13% while the S&P (SPY) was not far behind, falling 2.4%. Volume increased dramatically across the board and was well above average. In fact it was the highest volume of the week. Leading stocks were hit as well with the leaders index falling 2.65% on much higher and above average volume. It also had the highest volume of the week yesterday.
The market is pretty oversold right now after the declines of the worst week in a long time. It would not be unexpected to see at least a short term bounce soon, but I don’t think it would be anything to get excited about. A rally here would probably be a better shorting opportunity than one to go long.
In times like this you need to have a well thought trading plan….
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