The market resolved the wedge pattern to the downside overnight and was unable sustain a bounce during Thursday’s session. The market closed just off the lows of the day, which also stands at previous support from earlier in the wedge formation. After the down open, stocks got hit hard very early in the session but started to lift as the morning wore on. As the market drifted higher, it got us wondering whether the market would trade back into the range and delay the ultimate resolution, but the bears reasserted control in the late afternoon trade to leave a nasty taste in investors’ mouths.
Tomorrow will be a very interesting day, especially with a “Day of Rage” planned in Saudi Arabia. Will the market fall off the cliff, or will the powers-that-be bust this pattern and rescue stocks? Crude will likely be in focus again with tensions in another large oil producing country, and the scenes out of the Middle East could ultimately determine whether the market can bounce.
For market and stock specific commentary, watch T3Live.com’s Daily Recap video with Scott Redler above.
*DISCLOSURE: Scott Redler is long BIDU, AAPL, GLD; Short SPY, SLV.
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