Small Bounce Today (as expected)

With the oversold levels at end of last week, I was expecting a bounce. We did get somewhat of a minor bounce. I would rather have a minor bounce than a big single day bounce. The price action today may continue for another day or so. Especially given that there are price gaps slightly above current levels for almost all stock instruments.

Here is what the minor bounce did to short-term trending:

Major Markets

SPX Sectors

Alternate Sectors

Magnificent 8

Strategy

Out of the 35 instruments I track regularly (as above) only 11 were down today. The VIX fell a bit. The bounce could potentially go a little more as I stated above. I would actually look for that but proceed with caution. (Proceed with caution means not be married to my expectations and change mind quickly as required).