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Despite the uber-bulls looking for a continued v-shape bounce, the market action this morning is likely to be far more constructive. We opened with a gap down, and have been slowly stabilizing since. So long as the selling does not intensify throughout the session, I would view it as constructive, in the sense that some of these straight line moves off of last week’s bottom have a chance to base out a bit. The issue is that the market quickly became one in which traders were looking to shoot hole-in-ones, eagles, or birdies on every single trade, given the huge spike in volatility and price swings in both directions. Needless to say, seeing the volatility abate would probably serve many charts well in terms of setting them up for better buy points for long swing trades.
Just as we saw during the market swoon, it is not how they open ’em, but how we close is what is matters more. If this morning was the worst of it, then we are shooting par for the course, which is just fine for now.
hear that.