It was very constructive action towards a probable bounce in near future developing. In the morning, the dip buyers did not jump in as was the case on Monday and Tuesday. The complete lack of interest in buying the open was first sign of what was to follow. The investment bankers got taken to the cleaners.
There was some attempt at bounce at around 2.30 and at one time it looked like again we will have same problem, no fear and dip buyers just buying any weakness. But in the last 30-40 minutes they got pounded and we ended at low. Which is the kind of action which is encouraging. You want more selling, more panic and absence of dip buying.
In spite of the selling in last 3 days, the indicators I monitor are not really in extreme territory. The Worden T2108 is at 15. The primary indicators on Market Monitor have not yet reached extreme territory. So this action is good but more of this kind of action would set us up for a tradable 2-3 month bounce.