Yesterday's market action appeared to be encouraging with the markets recovering most of their losses and closing slightly in the positive. And we may get a rally today as a result. But the volume was less than the prior day's volume indicating to me that its still doubtful whether the market has turned the corner. In fact, I was looking at the chart of RERFX (American Funds - Euro Pacific) - a mutual fund that one can own for exposure to the emerging countries and European stock markets, and it appears to be completing what appears to be an upside down cup and handle formation. I wouldn't expect the market to just roll over so we will probably see a rally here. If it does break thru to the downside, that may indicate further weakness in the market.
So we are probably looking for the market to rally in the short term, but I will continue to watch from the sidelines as options expiration approaches this Friday.
No comments:
Post a Comment