We broke the rising wedge/ flag on the daily that everyone and their pet hamster were pointing to as the beginning of the next leg down, with most thinking a moderate overshoot of previous lows. It was almost as if the bears were expecting a violent whirlpool and the panicked sellers to get flushed into the netherworld. My gut tells me that would be too easy.
But instead we got this...Who knows maybe tomorrow the clog will suddenly disappear and we will wake up to hear a big woosh as the markets hurtle down.
The bears can point to this as a decent indicator that lows will be retested.
In short, looking to watch the strength of this potential bounce and reinitiate shorts Thurs/ Fri.