Yesterday turned in a decent bounce from levels that were teetering the day before. So when IWM, for instance, broke below minor support, now it has bounce back into what has become a bit of a trading range. I will abandon my short position in IWM if it breaks to the top of that range.
Really the EUR/USD is the same story. It broke to the downside, then teeters up into the range again.
So...the question for these various sectors (and others) is: how far, how long, how strong will the bounce be? I suspect that some weaker sectors (financials and Real Estate) might not even make it back to the top of the trading range. But that is unknown right now.
All I know is that the overall markets are way stretched to the upside and now let's see how much (if any) the market gives up in May/June, which are historically weak months.
However, that being said, I'm finding lots of stuff to buy. I think USO might be worth a shot here (that the ETF for light sweet TX crude) as well.
Gold seems toppy here, while gold stocks are positively bearish, maybe bottoming though.
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