The high TRIN mentioned last night brought the dip buyers out this morning. There was some selling into the strength, but a late day rally took the market above the morning high. Breadth was +69%. New highs were a paltry 13. New lows came in at 87. The volume was a bit lighter then Friday and well less then yesterday. This is not a clear bottom pattern yet.
The futures are still below the 20 MA. The last several days look like a downward sloping consolidation pattern with lower highs and lows. The bulls will need to break that to get a bounce going.
The red count dropped precipitously. That alleviates the oversold condition.
We are coming up to earnings season and most comments I have heard expect dynamite earnings. Lets take a look at the GAAP earnings.
The market is working off the oversold condition in a sideways manner. I can't remember the last time we saw that. This bull market has been leaving V bottoms behind most of the time. There are dip buyers around the 200 DMA, but there is also still quite a bit of supply. It is not clear we have made any kind of bottom yet. The bulls need to prove themselves.
Bob
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