The struggle continues, but NASDAQ hangs in there
Although the bearish short-term traders and speculators were able to push NASDAQ down to a new near-term low (but still not a 10% decline from the near-term peak), more bullish market participants joined in for a strong recovery rally into the close for a modest net gain for the day. True enough, the battle over the short-term trend is not over – we're still in dead-cat bounce territory. It may take another few more days to resolve the short-term trend.
Futures are poised for a nice pop, but it remains to be seen if bearish market participants will simply sell into the rally or reverse and "ride the tide." Either way, today won't be definitive for the short-term trend.
I'll be adding to or opening a couple more positions today.
-- Jack Krupansky