Bears beaten but not out. I should add "yet". It was a demoralizing day to say the least. What else is new?! A nice red gap that I knew would be bought to some degree, but not THIS much! I sold some bear funds soon after the open near the market low, but I bought them all back because I'd have thought the low would at least be tested. The market never look back even as the gap got quickly filled. It wasn't until the old high of 137.18 was taken out that the market started to take a respite.
The negative divergence on the SPY 60 minutes didn't play out as hoped. But the new high didn't hold and we have another mini negative divergence. The action in VXX, the volatility index, is a bit more promising. TZA, the triple small cap bear, is also not as bad. Tomorrow is crucial as we see how the negative divergence gets resolved. But guess what? As if the bears had enough breaks, the end of the month window dressing is upon us! Bears need to pray hard!
No comments:
Post a Comment