Credit Where It Is Due:
Market bias seems to go to extremes with heightened volatility. Many are in the bearish camp, and I somewhat include myself in that camp but I am a slave to PRICE action. My belief currently is that as long as the intraday lows from Monday hold on a CLOSING basis the bulls are back in charge. I have seen too many CNN Fear and Greed Index tweets recently from the bulls. Tops have been called by many a growling bear, but PRICE gave us a good area to play against this afternoon. The chart below of the Nasdaq which lost 1% Monday, shows the touch of a recent bullish ascending triangle breakout. This needs to show a firm bounce off this area in the next couple of days, as the saying goes “if the train pulls back into the station to let you on there is most likely something wrong with the train.” NVDA rose 3.4% today giving the SMH basically an UNCH CLOSE. One caveat with the SMH is the big volatility, the opposite of not shorting a dull market. In fact, that wide, erratic trade is indicative of topping behavior. Let PRICE guide you, it doesn’t lie.