The bear market rally off the lows of nearly two weeks ago ran into some April Fool’s Day selling today. The NASDAQ Composite Index, like the S&P 500 and the Dow, finally peeled away from its 20-dema to the downside as selling volume picked up yesterday. Today a gap-down open carried the index below its 10-dma on lighter volume.   ... Read More

Technically, the indexes are still holding up in an oversold rally, but intraday volatility remains high. In my view, the fat part of the shorting game that began in late February has come and gone. We are therefore left in an environment where nimble swing traders and day traders are left trying to play the volatility if they can. As the daily chart of the NASDAQ Composite Index... Read More

The market remains within the confines of a bear trend but is currently attempting its first real oversold rally since beginning its record-breaking crash in late February. I blogged Monday afternoon that I was starting to see some evidence of a potential reaction move off the lows, but I still didn’t view this as anything more than a bear market rally. So far, the real-time evidence favors this... Read More

The Crash of 2020 persists, as the NASDAQ Composite Index has done little more than form a short bear flag over the past week against a daily backdrop of tremendous intraday volatility. In the meantime, all we have seen so far are brief, oversold rallies, otherwise known as one-day wonder rallies. Some might prefer to use the phrase dead cat bounces (DCBs, for short).   ... Read More