Weak bounce does not a bottom make
Buyers step up to the plate and recover some of yesterday's losses, but buying volume was down on Tuesday's for some indices - and there were some losses end-of-day to keep the gains in check. I wouldn't expect much from indices tomorrow. but slow, steady gains over coming days would be good.
The S&P did manage to register an accumulation day but technicals are net bearish. If there is going to be a 'bear trap' it will need to do alot more. Bears hold the advantage in the near term.
The Russell 2000 ($IWM) finished with a 'spinning top', which is a more neutral outlook for the index. With the undercut of the May lows in the S&P and Nasdaq, the likelihood for the same happening here is increased. Today's close also saw a lose in relative performance to the aforementioned indices.
We can't say a whole lot about today. The candlesticks were neutral and volume was on the light side. This has the look of a weak bounce, which means to reverse this we have to see an increase in buying volume and ideally, wide range candlesticks. Lets see what tomorrow brings.
You've now read my opinion, next read Douglas' blog.
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