A bounce is a bounce, and not indicative of a trend. As I said a few weeks back when the up move was beginning to wane, currencies and commodities are not following this up move (this bounce we're talking about). That means I don't put much faith in it. I would expect AUD/USD to be rocketing based on it's almost 1000 pip down move in the last week. It's not. It's up, but not massively. Therefore I cannot go long. I won't go short, either, but until I get a confirmation on the broader market, equity bounces don't do much for me.
there are really old indicators that fortold the correction, and when to reverse. created 40 years ago. they still work.
http://stockcharts.com/h-sc/ui?s=IWM&p=W&b=5&g=0&id=p76456861137 That doesn't look like a bullish chart to me. I designate it the "two stabs at the heart and waiting for a third" formation.
Holy crap, what kind of end of day move was that? You look at that and there's no way you can't say this isn't a casino. No way. HAL9000 won that one. Just look at the volume (or lack of) of the move.
Bounced nicely today and gutless as I am I took a lot of money off the table because in my mind it is a coin toss over the weekend as to the action next week and I was waaaay to long too long. Now to start drinking. Gnarly week.....