Tuesday, November 22, 2011

bounce likely tomorrow

Although most of my end of day indicators are confirming this downtrend with little indication of a turn around, one of my indicators related to the VIX is flashing a strong buy signal. Although I will not be acting on this signal, I would expect a bounce tomorrow and possibly Friday as well.

Granted with it being Thanksgiving week, this might stifle the rally with low volume.

All in all, I am relatively pessimistic on the market at this point.  My gut says we will get a decent rally over the next few days, and then next week once all players are back from vacation the market will drop hard again.  I would expect a 2 - 3% bounce up, then a hard drop from there.

With all this said ... a healthy news story could turn things around lickety split!

Hopefully the numbers will tell me a different story in a few days, but for now ... i am sitting on the side lines and hoping, but not betting for the best.

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