As I write this about 90 minutes before the closing well, markets opened lower and continue to languish, with declines slightly outpacing advances.
This is only notable because markets are already severely oversold – at least by common metrics. So, while astute traders may have anticipated a bounce today, that has not yet materialized.
I have no interest in trading these bounces, because I believe the intermediate trend of the markets is now aligned with the long term trend – DOWN. And in a bear market, equities can go from oversold to very oversold, and stay there longer than one would think.
So, let’s see what the last hour of trading holds. In the meantime, we continue to hold fast to our short S&P 500 futures position.