The final trading month of the year has gotten off to a raucous start, selling off Monday and yesterday on trade fears. President Trump’s statement that that he would be satisfied if a trade deal, even a Phase One trade deal, were delayed beyond the November 2020 election, sent the indexes gapping to the downside yesterday at the open.
But as I blogged shortly after the bell, many of the names that I watch were rallying right off their opening lows and flashing long entry signals on their five-minute 620-charts. This provided some very playable 360-degree trading off the lows. The rally continued this morning on another gap move, this time to the upside on what was billed as positive trade news.
Despite the contradictory news swirl, and aside from the long entry signals in individual stocks, the technical evidence for an intraday turn was also there to be seen in the indexes. Note the undercut & rally move by the NASDAQ Composite Index yesterday at its lows of two weeks ago, which set the stage for a rebound off the intraday lows in all of the major market indexes.
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