The market is trying to stabilize after this morning’s carnage, though we could just as easily be working through a bear flag on the intraday SPY chart above. As far as sentiment goes, I still see plenty of traders cheering each intraday rally, and many looking for a swingable oversold bounce. I have not closed my shorts, but have been slow to add to them given the intraday choppiness. Cash is the best defense in this type of market, though plenty of momentum shorts are working. Many stocks can run during a correction, but they cannot hide for long.
We may very well get that oversold bounce soon, but it might be a replica of yesterday’s anemic effort. I will have more Bollinger Band discussion after the bell on my video recap. For now, though, I am resisting the urge to bottom-pick.
