It’s tempting to look for a fast recovery for a market blow-off like this that doesn’t have any obvious big economic drivers. But it’s rare to see “V” shaped recoveries when fear gets this high. I’m expecting the market will need to form a bottom here before there can be a sustained rally. At least a couple more down days are probably in the works. The only bullish factor I see right now is the high volume—there are buyers out there.
A discussion on trading in bear markets and a reminder that stocks don’t crash up from author Jeff Augen, and a interesting article looking at post-crash performance in the past.
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