Market Monitor: Bearish
- We are at a stage where a reflex rally is distinct possibility.
- On the MM four things indicate this: # of stocks up 50% plus, # of stocks down 50% plus, number of stocks up 100% plus , and 500 plus up days on 4% in last three days.
- The spread between the 4% plus breakouts is around 500 and if market puts together a one week rally, we might be in green in a weeks time.
- However on individual stocks the breakouts are concentrated in large cap stocks. Number of DJ components had EP in last 2-3 days and most have followed through on them.
- The IBD kind of stocks and small caps stocks which make the explosive moves are not yet in the play. more