Severe Oversold Conditions at Capitulation Levels
He morning dip has pushed the markets into historic capitulation status. Decliners are currently 7:1 over advancers and declining volume is 15:1 over advancing volume.
THIS IS HISTORICALLY INDICATIVE OF A CAPITULATION EVENT!
Aggressive traders might consider buying this dip. The Dow at 10800 is currently rebounding from its low of the day at 10757. The Nasdaq hit critical support at 2100 and is rebounding. The SPX also hit critical support at 1240 and is rebounding.
I am buying the dip for a quick trade. Be aware that we could see another rally sold so keep your stops tight but we could get a decent bounce before pressures ease.Jim Brown