What was with Wednesday? It could have been said that it was going just fine. Fine, that is, until about 3:05. Then, an end of the day sell-off commenced. If you don’t know this: 9:30 to 10:30 is often referred to as the Amateur Hour, whereas the final hour, 3:00 to 4:00 is the Professional Hour. For the last 55 minutes, there was considerable selling. Institutions were lightening up.
The good news, if there’s any to be found, is that all kinds of technical indicators are now creating what is referred to as ‘positive divergences’. I’ve seen a goodly number of them… some in my own work. A positive divergence in these indicators, at a time like this, when the indexes appear to be making a double-bottom with the lows previously set back on January 20, would be an indication that this new level of lower support is much more likely to hold, and that it is also likely to be that level of support from which the next rally will lift-off from. If they work this time, in that capacity, then the rally they are supposedly presaging is about to commence!
If that should fail to happen… well, let’s try not to think about that just yet, shall we?
And, the futures, at 5:00 pm EST are down a tenth or two. More, later…. And, at 9:30 pm EST, down even more. Between .3 and .36%. It’s not getting better. What will morning bring? 3:50 am EST, and things are NOT well… futures off 1.57 to 1.78%. It’s trouble!!! Asia already got whacked, and Europe is taking a whippin’ right now. Metals are on the move, too! Got gold?
Here’s to your successful investing,
Harold F Crowell