When we look at today’s (Tuesday’s) final numbers, we see a possible buying opportunity. Volumes were lower on today’s retest of the low and internals improved. This suggests that the correction has ended or is close to ending…in theory. There are questions: The “correction” has only lasted 15-days so far and that is a bit short; the S&P 500 has only fallen 4% from its all-time high. That’s not much. There is a bigger concern, at least regarding calling a bottom.
What I am doing is standard technical analysis. It is not a secret and Wall Street is well aware of techniques to call a bottom. When I check futures, they are slightly higher at 10:30 pm Tuesday, but not suggesting that Wall Street is buying.
I’ll wait and see if there is significant buying
Wednesday that would confirm a buying opportunity. If there is, I’ll join in,
especially if we see late-day buying. Otherwise, I’ll wait for a better
opportunity.
