Today’s volume on the Nasdaq appears to be large enough for the intraday flush that a short term bottom could stick. Another positive is that the indexed rebounded in bullish fashion after falling below the up-sloping trendline that goes back to Dec 11′ . I closed out my index shorts today and while not getting the best prices, I’m glad how this bearish timing call played out.
With that being said I’m not buying anything right now as I don’t see an edge. That could change in a few days or next week, but for now I’ll sit and watch and see if there are still more sellers in the market or if stocks want to rise.
I do know that the longer we stay under the 200 moving average the greater the odds that today wasn’t a bottom.
