This market is so tricky because it feels like we should bounce but we keep grinding lower. And it’s such a uniform decline it’s almost scary to think what’s going to happen when true fear and panic sets in. I thought we may bounce earlier in the morning when we were putting in a double bottom on the 5-min chart (seen below), but now I’m thinking we’re going to continue dropping as we are consolidating right below previous support.
Sentiment indicators are not reaching any extremes as well, which is adding to my bearish state. I’m in cash right now because it’s difficult to enter new shorts right now as it goes against most people’s logic. But selling begets selling and I would not want to be long any amount of stock right now. I feel bad for long only mutual fund managers. We are definitely witnessing history, and not the good kind.
