Fading the opening gap seems to be the thing to do the past two days! The S&P eminis were a total chopfest during the morning. But then the bears took the reigns and bye-bye market. Volume was a bit heavier today than yesterday, but it wasn’t a panic. Yes we had a confirmation of yesterday’s bearish engulfing pattern, we lost the 200-day moving average, and we cussed up a storm all afternoon…What the $%@&*!
Many indicators have quickly gone from overbought to oversold. The TRIN closed at 3.82. The Arms Index says: TRIN close over 2.0 results in bounce next day 9 times out of 10. No bounce? Market in trouble. So I guess we have to wait until tomorrow to see how it goes.
Remember, after Monday and Tuesday even the calendar says W T F . . .
Sometimes, entranced by the screens, watching equities, options and futures change colors, charts moving in a wave, and indicators pointing in every direction, I just have to scream....
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