By looking at the chart pattern, the market set itself up for a Monday Gap Up that would finally start a bullish rally. The market tested the TA today and closed right underneath it and like I said yesterday, usually when the market comes close to the TA a big move happens either way. And obviously I don't want to sound like a broken record but this market is ripe for a rally after all this selling and extreme bearishness. People who wanted to sell have probably already sold by now and it takes just a single catalyst to be the excuse of a multi-week rally. At the same time, it is risky to try to guess the bottom so until the TA starts turning up again, I will be on the sidelines on my margin buying. Should Monday start with a Gap, I will probably get in at the retrace.
Have a Great Weekend!
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