A holiday induced , low volume bounce finally kicked in on Friday. It is not the kind of action to be excited about much. The groups leading the bounce were beaten down groups like retail and finance. Those are not the groups likely to lead the market higher.
The market continues to be in confirmed correction mode as per Market Monitor. While the market might have a reflex bounce at this stage, we are no where close to having a sustained rally. Leading stocks are not in a shape to mount reversals. Bounces on leading stocks are on low volume. Many had several days of straight down action and currently having light volume rally. They are more vulnerable to going down. Unless we see a back to back 300 plus positive days in a week or improvement in 65 days ratio, we are unlikely to have a sustained bounce.