We’re three trading days into the bounce we anticipated.
A bounce off the S&P 1,850ish level is logical. And it’s also likely to be largely rooted in short seller covering. We’ll give it another day for this to play out.
Starting Tuesday, we’re looking to see if real buyers can step in, as evidence of accumulation on the major indexes might suggest.
A new group of leadership will also need to form for any durable bottom to have been placed here.
And of course, we may not have seen the lows. Any weak bounce or price stagnation in here could be an opportunity to set up in shorts. We monitor as we go.
This is all about trading what is and not “what should be.”