In todays' commentary I mentioned that yesterday's drop didn't look like a panic sell-off as support held very neatly. This morning however, saw a break of the prior day's low and then another quick half percent dive which seemed to take out the stop losses. That was followed by a bounce, a test, and another bounce.
So far so good, but Friday sell-offs can be dangerous to Monday mornings as the herd tends to get wind of the weakness and sells the open. That's when panic can really set in but it can also set up a capitulation bottom.
I hate to talk about capitulations during a market that is barely off all time highs, but you know what I mean. This is a strong bull market that has rewarded those brave enough to buy modest weakness.
If the recent Friday buyers decide it won't work this week, we could get a late sell-off as well. We'll see.
Bookmarks