Stocks claw their way back from some severe overnight futures losses. So far this looks healthy as the charts back and fill some of Tuesday's big gains.
We're in a bear market but the bulls will occasionally have their day in the sun as the selling exhausts itself. We see that with oversold indicators and extremely negative sentiment.
It could take days, weeks, or even months to play out sometimes depending on the situation and how volatile stocks have been.
The open gaps overhead, and they are quite a bit above the current level, are obvious potential targets, but as I mentioned in today's Market Commentary, those levels look too obvious and that could be setting up some kind if anomalous move, whether extreme to the upside or more shallow and not completely filling all of the gaps.
We may now be in a short term buy the dip environment but expect the unexpected.
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