The View; Monday’s Sell Off Was Just An Illusion

There is not much to say besides the fact that the DOW JONES $DIA erased all the losses from the world ending sell off on Monday, the $SPY retraced about 90% of it, but the $COMPQ and $IWM are lagging in this department. Like I have been saying, tops are a process not a one day event, normally you see a decent sell off proceeded by a rally that many times makes a new high followed by months of churning action. This all leads to; be methodical when it comes to selling in a bull market and be quick to jump on a rally coming off a bear market. Where do we go from here? I believe that the market will start to react more to technical levels from this point on and chances are high that we will start to see more and more divergences on any rallies from here on out. That is what I believe now and that is always subject to change without notice.

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