Root for a Lower Low

I was asked what might lead the market out of the abyss, if and when we ever get that low for which I keep aiming in the second week of June. If a low comes from capitulation -- which is still not evident in the charts -- then typically the stocks getting "smooshed" at the end will be those that rebound the most. Yes, "smooshed" is a technical term!

As for Thursday's trading, I must note that, as soon as we saw a whoosh down that rebounded, my inbox became filled with folks asking if there were positive divergences. Let me explain what a positive divergence is. The first thing that's required is a lower low in a major index. Without a lower low, there is no such thing as a positive divergence. There is nothing to compare -- period....359 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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