600+ Points Sideways Day?
"Even though this is in all possibilities the classic start of a market crash, it still needs to be completed by how it behaves around key resistance areas when the inevitable dead cat bounce starts. A turn back around at those levels would complete the primary bear trend and confirm the market crash."
US market was higher sharply today even though there continue to be strong signs of selling into the strength. In fact, I took this as an opportunity to start pre-positioning my Master's Stock Options Picks subscribers with put options positions in order to benefit from the next leg down which will complete the bear market (Not pre-positioned? Don't know how to do so? Join my Master's Stock Options Picks Service now!)
Yes, today's trading was still largely technical in nature with investors continuing to reallocate back into the lower equities from the battered bond yields, aka, Dead Cat Bounce. Dead Cat bounces are basically oversold rallies caused by a limited number of remaining bulls which will no doubt run out of steam quickly as the mass continue to sell off on the then slightly higher price. Also, even though today's closing looked impressive, with the Dow gaining a MASSIVE 600+ points, its really just been trading all day within yesterday's trading range, which in technical analysis, we call it just a sideways day. Yes, its a 600+ points sideways day. That should tell you how volatile the market is right now.
I maintain my previous outlooks for now.
Market Crash Timer: ORANGE
For now, the market turns a short term neutral trend within an intermediate bear trend and primary neutral trend.