There has been a lot of discussion in the MSM and various blogs about just how powerful yesterday was in turning around this downtrend. Now, I’ve already touched on this topic this morning. But I feel like there is one more point I need to add…
There wasn’t a spike in buying volume yesterday, nor was there a major shift in traders picking up those ‘risk on’ stocks in size, outside of $APPL. Yes the higher-beta stocks did outperform, but not to the degree many people are saying they did. Below is a chart of the buying (green) vs. selling (red) volume. I’ve circled yesterday’s action….looks exciting doesn’t it? Not so much. We need to work off this oversold condition and Robert Sinn pointed out the inverted head and shoulders pattern that would take us to approx. 1330 on the S&P.
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