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I have a sense that market has bottomed. Today's trading has characteristics of capitulation. We may have a slow uptrend starting soon. Of course no one knows for sure. It is best not to hold positions over night.
Some factors to consider:
* Volume spiked
* VIX and Put/Call Ratio relatively low --> not too bearish. These indicators need to be high for a powerful rebound. But for this case, low values may mean exhaustion of bears.
* This last leg down seems to have the characteristics of exhaustion wave.
The market may still have a few more days of selling to exhaust the remaining bears. And if those more selling does not cause a panic, it will slowly recover. |
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