The Naz hit 0 several times intraday this morning. Whether that'll be good enough for a real reversal remains to be seen. Last week's intraday buy signal for the S&P wasn't reliable. Usually, when that intraday signal doesn't work, the CI's do wind up closing near 0 before long. So maybe it's too early to jump in. It would be clearer if the Naz and S&P CI closed near 0.
Also, the Naz hasn't yet hit the prior low of 33.09. And the Dow broke under the 50 SMA. That often means it's headed to the 200, which is at 9,961. The candle body is trying to hold at the 50, but it's iffy, since the shadow has broken through. So today's intraday bounce could turn out to be a short-lived "rally." The SPX broke under the 50 last week. I'd be cautious.
Why cautious? Because the indexes have broken through some support levels and haven't bottomed out at lower support levels yet, and because the CI's buy signals have been tentative intraday ones that haven't been confirmed with closing signals. Also, as I've said before, the longer-term CI's are still overbought, and that could bear down on any shorter-term rallies. Does this mean the market isn't going to bounce here? No. The future direction of the market can't be consistently and accurately predicted.
No doubt there are those who fear they'll miss the rally (including me, what with the indexes rising early this afternoon). This is how the market sucks traders in, of course.
If anyone sees any reliable buy signals anywhere, let us know. |
