Market Monitor: Bearish Secondary indicators bullish. Indicating possibility of reflex bounce.
Worden T2108 = 4.06
- There was real panic yesterday after a long time. Till now most sell-off have been followed by eager dip buyers. Gap downs have been bought, yesterday was one of those days where there was no hint of buyers as market opened weak. Rumors of worldwide coordinated rate cuts had the market recovering in last hour. But overall it was panicky move. James Crammer who has been extolling people to buy was yesterday telling them to panic. Such panicky sell-off are good as they will ultimately lead to capitulation.
- As there has been lot of selling in last few days, all the secondary indicators on Market Monitor are now in extreme territory. Such extreme readings have high probability of producing a counter trend moves in shorter time frames. Such bounces are for the nimble few. The primary indicator on Market Monitor is not yet in extreme territory but it is getting there.