Today turned out to be neither Turnaround Tuesday nor Terrible Tuesday.
It’s more like Tough Tuesday. Tough for both the bears and the bulls.
This morning, we sent out this alert:
“$COMPQ, $SPX and $RUT all gapped up this morning, and thing are looking bullish at first glance. However, not all our indicators have confirmed that this is a true end of the big dip and the start of a new major Up Segment within an Up Trend.
Sometimes this kind of quick turnaround is a setup for a re-test of March 22 high and typically the start of a bigger drop. We are choosing to wait for further confirmation at this point.”
That turned out to be the right move as $SPX, $COMPQ, and $RUT all marched down most of the day, shaking out the weak bulls. But the bears got a surprise surge in price at day end as well.
We are observing an interesting change in the long-term trend as shown by the weekly indicators.
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