After few weeks of correction the market is attempting to put a bottom. During correction market had around 9 % correction. Typical corrections are 8 to 10% in bull market.
So far the reflex bounce has held up well , but it is still not all clear . Many reflex bounces can fail after few weeks. The individual stock action is dominated by some V shaped bounces . The V shaped bounces have become the defining character of this market in last few years.
But some sector action in last ten days points to probably emergence of new leadership. Healthcare and residential construction shows best setups as of now. REITS and defensive sectors also dominate the action.
From momentum burst kind of swing trading as of now not many A quality setups are showing up, but if this becomes a bottom that situation can fast change. When situation changes tons of good setup will show up suddenly.
So far the reflex bounce has held up well , but it is still not all clear . Many reflex bounces can fail after few weeks. The individual stock action is dominated by some V shaped bounces . The V shaped bounces have become the defining character of this market in last few years.
But some sector action in last ten days points to probably emergence of new leadership. Healthcare and residential construction shows best setups as of now. REITS and defensive sectors also dominate the action.
From momentum burst kind of swing trading as of now not many A quality setups are showing up, but if this becomes a bottom that situation can fast change. When situation changes tons of good setup will show up suddenly.
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