Wednesday, July 26, 2006
Yesterday's follow through day has a lot of bulls thinking recovery. The problem is that indices are once again near stiff resistance. It's not a good idea to make too much about yesterday's trading. Buyers could potentially come in and buy stocks up past support, but the probabilities are slim that this will happen. Moreover, without a decent base from which to rebound, a move higher is likely only going to attract more sellers and cause another steep drop.