Today we got a bounce and a smaller range day compared to yesterday. This was expected as volatility cannot continue to swing like it was. However, I do not not think we are done with this correction. Of course I could be wrong, and we trade much higher tomorrow but here is why I think you need to cautious still and not get dragged into this bounce.
1. weak bounce, weak volume
2. bounced into resistance
3. $GS under performed today. It has been a leader.
Overall, the tape is almost the same as it was yesterday. We have now bounced and regained a little footing. IF this is going to be a bottom (doubt it), it will be need to get over the recent pivot high for me to get involded again to the long side.
Apple bounced a little bit today. Still in an overall downtrend, I do NOT expect this to change.
Google giving way a little bit. Focus on buying the leaders when the time is right.
Amazon is losing it, would not touch it.
Alot of the banks got bounces today, we shall see if they lead to anything, or not. I am not putting any money on them, yet.
As always, feel free to Tweet (@BenCBanks), or email me (contact page) with questions or comments.