Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
The market is volatile today but in a relatively small range. Everyone is looking for the trademark reversal into the close that one of these days will mark a short term bottom. I will say the index is hiding a lot of damage. What is bouncing today is the stuff that has been demolished for weeks – take Wynn Resorts (WYNN) as an example. If you held it the whole way down you are “winning” today but my gosh, it is the case example of why taking moderate losses is far better than sticking through – even if that strategy looked extremely foolish in January and February.
Meanwhile they are coming around to attack the names that had been holding up – see this homebuilder ETF.
So the averages look benign while the rotational correction continues under the surface… nothing is being left unscathed. Bigger picture, after this oversold bounce (whenever it may come) we have a host of broken charts that will needs weeks of recovery to build any real base.
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