We dropped -2% on Wednesday and rallied 0.25% on Thursday. That is called a dead cat bounce. A dead cat bounce means there was no upside excitement and no follow through to an early rebound. Volume the last two days has been very heavy at more 8.15 billion each. With that kind of volume we should have seen a bigger bounce. That means there were still a lot of sellers.
Friday could be a pivotal point in the market's future. The rebound today was lackluster and closed well off its highs. After a major market decline, investors want to see a major rebound. When that did not happen the indexes began to fade into the close. Given the weekend event risk and the sudden change in market sentiment Friday could be a make or break day. If the afternoon weakness carries over into selling on Friday, there could be a race to the exits. Traders are uncertain of direction and they will have their finger on the sell button. No new plays today.
NEW BULLISH Plays
No New Bullish Plays
NEW BEARISH Plays
No New Bearish Plays