The markets took a serious beating but a bounce could be very near. This bounce will give us lots of clues about the health of this market. A weak bounce tells me that we are going much lower into this corrective move. Regardless any move from here would very likely setup lots of shorting opportunites in the coming days. This correction could easily take us down another 5% and could last another 2-3 more months before we setup the classic year end rally or what i call the 'Wall Street Bonus Rally.' The market is way too oversold anyway you look at it right now to short here. I am gonna wait and see how a corrective move up plays out before i get aggressively short. The fact that we are seeing capitulation type high volume on the selloffs near the top(instead of the capitulation type volume after a long extended decline) tells me that we are going much lower in the coming weeks.
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