A deep dive into the latest index charts and data.
Optimism tends to drive the oversold, counter-trend bounces, while reality tends to end them.
Index charts may be setting up to test their respective support levels.
The two portfolios, one active and the other passive, have sagged with the broader market but still are outperforming a pair of Russell value indices.
With the faster news cycle and quicker speed of transactions, it makes sense that a market bottom might be reached quicker. But this looks more like a retest than a bottom.
Every significant bear market in the past has seen substantial bounces just like what we are experiencing now.
Index data continue to send bullish signals.
Don't rush to buy for fear that you are going to miss the best entry points. Countertrend bounces should not be easily trusted.
Psychology indicators remain bullish.
The bounce in the DJIA hasn't produced the shortest bear market in history or a new bull market.