The bottom line, I don’t see any reversal patterns so could be more downside ahead. The bull’s hope is a reversal day tomorrow because now the market is very oversold with 1765 Russell 3000 stocks fell on increased volume, so one more down day, perhaps a sharp gap down tomorrow, may cause bulls to throw in the towel thus creating a capitulation effect usually needed for a bottom. On the other hand, if we don’t get any sharp down, instead a small green day tomorrow, then be careful, the sell off might not be over yet. Anyway, my suggestion is still that do not buy this dip before seeing a reversal pattern. I’ll post something here in my blog as soon as I see a reversal pattern.
One trick today: Days after a Major Distribution Day (NYDNV/NYUPV > 9), such as today tended to close in green 21 out of 32 times (66%).
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