Only because when there is a huge tank, after hours especially, there is often a vacuum since everyone got stopped out. Just like when we get huge news slams that tank them during the day - those are always bought by the pros. After everyone is out, nowhere to go but up (A Linda Raschke tip). But if the SP breaks 869 here, I'll sell.
I'm only scalping the dead cat bounce, I've got 3 or 4 pts right here and will be out later this evening, either with a few points or stopped out break even. I'm not letting it go lower!
The futures usually bounce after our big selloffs, on short covering overseas. What's hilarious, is that's what they often ramp the morning open on. So next time you see a gap up on the way, like yesterday, check and see if it's just short covering overseas. Often why gaps roll over, it's not real buy pressure, just short covering in low liquidity overnight that pumps them! Hilarious to watch,it starts around 3:30 am after barely a trade for hours.
The dollar just broke April 200 support, not much of any support until 103. Gold just shot up 2 bucks and set an alert off - it's 319 tonight. That weekly bullflag still looks nice, 4 more bucks and it could break out. |
