If you’re bearish…

What are you waiting for
It’s just a minute away
Following Rita
Following Rita
— Train – Following Rita

In the short term, the only thing the markets accomplished on Monday was to test the top of the downtrend and give it a bit more validity.  I think most traders expected a bigger bounce today after last week’s drubbing.  The fact that we didn’t get it is a negative.  However, in the convoluted logic that is the market, this weak bounce could lead to a better bottom as traders give up hope, weak holders sell stock and participants become more pessimistic.  Unless the market can take out the downtrend, a low in October still looks like the highest probability outcome. 

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1 thought on “If you’re bearish…”

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