October's low clearly is in jeopardy of breaking down. Considering the lack of bullish divergences on any major index or on the majority of stocks a break through the October 10th low has a great deal of potential to create a panic washout.
Moreover, sentiment readings remain surprisingly bullish with 52% of the traders still looking for a bullish bounce against only 21% looking for more lows to come. With readings like this and with the sellers still in charge of the tape, the short side looks to continue to be profitable.
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