Yesterday buyers stepped in at the end of the day as oversold conditions reached extreme levels. It is likely that the market will experience some type of bounce from current levels.
Right now, however, the market is guilty until proven innocent. This is not the time to step in and buy the lows for anything more than a day trade. It is in these types of markets that eager buyers provide fodder for the short sellers as stocks are passed from one weak hand to another like a hot potato.
We will be viewing any bounce here suspiciously. Keep an eye out for a run back up to resistance that occurs on decreasing volume. Volume and price is key here. We will be buyers again when a higher low is followed up with a higher high. We strongly urge readers to take the same skeptical attitude here.
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