I just came back from my 4 days vacation trips. I didn't watch today's market, but if you follow my last post I guess you should take a quick profit with the resistance I mentioned at 1040.
The market failed at 1040 and closed at 1028.06, up 5.48 points, there are only two things it will do, retest 1040, or retest 1010. It's seems like playing roulette again because the risk reward ratio is pretty even right now.
It appears now that several more days of scraping along the bottom is needed, before any meaningful advance. Bearish sentiment has reached extreme levels, with Call/Put ratio reaching its lowest level in seven weeks over the last three 3 days, and OddLot Shorts/Volume the highest in 12 weeks.
Last Thursday, I talked about the bottom at 1010 is not the one I am looking for because the panic capitulation did not happen. Other nations, like Hong Kong, China, Japan, seem didn't join the sell off and no panic happen yet.
Market will spent few days to build a foundation before any meaningful rally is established if 1010 is the temporary low. That is, the market will retest 1010 low again in the near future. I will keep an eye on the resistances I mention before which are 1040, 1056, 1071, 1085
I may long the market if 1010 hold and rebound, and I will avoid short aggressively at this level, however I may short again when it hit my resistances level.
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