Bounce It Around First
After correcting since mid-September, the market managed a good-sized, two-day bounce that took the Nasdaq back over the 50-day simple moving average. This is the second bounce since the downtrend began. The first bounce failed badly, but not before roping in some buyers and convincing them the worst was over.
This time conditions are a bit different. The market is even more oversold and earnings season is starting. The justification for this correction has been that earnings season is likely to be poor and forward guidance weak. The bulls say this pessimism is already priced in and that we will likely see buying when things don't turn out to be as badly as anticipated....107 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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