We are nearly 25 points on the S&P 500 off of this morning’s lows, and the trading session is still young. Clearly, we were due for some type of an oversold bounce. The issue is how lasting it will be, thus giving the opportunity to swing it. It is a real plus for the bulls that the small cap-led Russell 2000 is significantly outperforming to the upside today, as it had been leading the market down before. Retail and technology are also leading, while financials and energy remain the laggards, and you can be sure the bears will point to that as evidence of merely a dead cat bounce before we head lower.
To be sure, the issue with these types of intraday reversals in oversold markets is that a good deal of the time they serve as nothing more than traps for eager bulls to fall into. So, even though this morning feels like a reversal of fortune, the question of whose fortune is being created remains to be seen.
Nice analysis… I came in long today expecting the bounce, but now that we’ve got some sort of it, I will cut it all loose if we don’t sustain the upside momentum…
good plan
I won’t lie i’m a buyer today but that’s after yesterday all my shorts got closed. and imo this can be big dead cat bounce because I cant see any fear today and the bad news are not out yet the question is when they will be posted =]
don’t be mistaken I can see the spy at 92 – 93 within 3 months right now just trying to trade