Tuesday was a rally generated by algos building on rumors of a short sale ban in financials, some rumors that Bernanke will launch another round of QE of some sort and oversold conditions. Maybe yesterday’s action will mark a major turning point, but there isn’t any evidence to support that conclusion. It really is an oversold bounce. Chances are good we’ll see some follow through to the upside in the next few days, especially with Bernanke on the horizon, but the odds that we will roll over again in the next couple of weeks and take out the recent lows remain quite high. Once Bernanke is out of the way, I wouldn’t be surprised to see the bears press once again.
No comments:
Post a Comment