A Classic Reversal
It has been a while since we've had a day this ugly. In fact, the last time we had a reversal this big was back in June 2011. On Nov. 14, 2012, we had somewhat similar action and that marked the end of a three-month downtrend. Unfortunately, the action today definitely does not look anything like a bottom. There was outright panic into the close and you can bet there are some stuck longs who are going to be looking for exits in the next few days.
This action is a classic reversal. We were warned last week that the topping process was starting and then had an oversold bounce Friday. That led to a gap-up open this morning and that was the invitation to sell. Last week's lows were easily breached and, most notably, the selling pressure continued all day and accelerated into the close....189 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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