Stronger Belief That the Bounce Will Fail

 | Aug 21, 2017 | 1:42 PM EDT
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It is a good thing for the business media that we have this eclipse today because there sure isn't much going on in this market. The bounce action finally kicked in, but it isn't exactly a rampage of buying. Breadth is still running on the negative side and the pockets of momentum are probably the narrowest I've seen this year.

There are a few hot names like  (WUBA) , Xplore Technologies (XPLR) and Herbalife (HLF) but there are no themes or sector leadership. It is just a few odds and ends that very short term traders are playing.

For the first time in a while there seems to be a much stronger belief that this bounce is going to fail. Failed bounces are what downtrends are made of and we have not had much of that in many years. Downtrends are not just the inverse of uptrends. They tend to occur faster and end sooner. You generally have to be more anticipatory to catch them for a trade.

My game plan here is pretty unexciting. I'm going to be patient and wait and see if the bears can roll this market over again. I see no reason to buy in hopes of a quick bounce at this point. Buying requires either a further breakdown or some proof that support levels will hold. So far we have neither of those things occurring.

The best thing you can do right now is enjoy the eclipse.

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