A Quick Bounce Could Be at Hand
There is so much to review after Monday's market moves that I want to take this in order of time frames. Let's begin with the indicators that say we can have a quick short-term bounce to relieve some of the selling that took place in the last session. From there we'll move on to the fact that nothing has changed in the intermediate-term indicators, as they remain overbought and are heading down -- which keeps me in the camp that says the market needs more of a correction. Finally we'll look at the currencies, since that seems to be the main area of interest these days.
If you want to look for a short-term bounce, you might cite that the Arms Index (TRIN) came in around 3, and the fact that 90% of the volume was on the downside. Both of these indicators often lead to a one-to-three-day bounce....551 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.