It seemed that played out perfectly. :-)
First have a look at the leader of the market, the Dow Jones transports. It is in a very nice uptrend and holding very well.
This has been a freight train, We have only had a few red days since the 5200 level.
|dow jones transportation|
The Summation or market breadth has clearly been signaling to NOT FALL IN LOVE WITH THE DOWNSIDE, and that has been correct. We are still on a BUY DIPS stance and nothing has changed for now. We need to continue to monitor this chart in the coming weeks, but for now as said, we are still in a buy the dips position on the market.
The nasdaq has been going sideways the last few days, but the hourly chart below is signaling we are oversold again, and some sort of bounce is coming.
|nasdaq hourly chart|
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