Back into the game
After a couple of months of not writing on this board, I am back with some considerations about the health of the market. Clearly the last 10 days have shown a pretty negative price/action. The market is in a correction right now. Up days have shown no volume and down days pointed at heavy institutional selling. But a correction in the last part of January is anything but a surprise.
The last two weeks in Decmebr and the first two in January are usually good for the market and then there is a small correction. So far we have corrected 80 points on the S&P as of the lows of January 29th. Yesterday has been an up day without volume but today is shaping to be the best day in two weeks: we are moving up and turnover is higher as well.
If the day doesn’t turn upside down, this could be the beginning of a new rally. Too soon to say for sure, but price/action is what counts the most.