Is The Sell-Off Over?
After Monday’s sharp decline to start this week, it appeared that the stock market was poised to continue its sell-off. But the last three days have seen a reversal from Monday’s lows, and some solid gains. Is the sell-off over?
The stock market was so oversold it had to mount a rally eventually. No matter the sharpness of the decline there will be rallies. No matter the steepness of any advance, there will be corrections. Thursday’s rally fizzled in the last two hours, though the day finished positive. Watch Friday’s close. If we mount a decent rally and it accelerates into the close, we should see more gains next week. But if we see traders heading for the exits tomorrow afternoon so they do not have to hold positions over the weekend, we may very well see more selling early next week, and lower lows.
Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.
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