- Ryan Mallory
Solid bounce yesterday, but can the markets today follow through?
For many years now, when we see the dead cat bounce come about, stocks overall will look to continue the bounce for several days going forward. For the markets today, will that ring true yet again? The futures are slightly down, but that has been the norm of the past couple of days: sell off overnight and rally during the market open.
The market is dealing with some heavily oversold conditions, so the potential is there for further follow through. There is a nice short-term double top pattern that has formed with the right side being slightly lower, but still the intent is there, and that pattern has actually confirmed. But yesterday's bounce takes price back above the neckline of that double top confirmation area. So now that chart pattern, as many other bearish patterns in the past, is in jeopardy of being nullified. T2108 is still showing a very low reading where only 41% of stocks are trading above their 40-day moving average.
Oil bounced yesterday, but still in a solid downtrend.