14,651 was the low on August 28th Today’s low at 14,648 took it out by 3 ticks, and we have now rallied 123 points from that low, or $615 bucks per mini dow long. Right now we seem to be looking at trying to carve out a bottom. 15 trading days ago, we rallied on the resignation of Summers from running for the Fed. 15 days and we broke 1,000 pts or 6%. That hardly falls into the category of more than a blip, in the gran scheme of things.
To answer your question, No, I did not buy the low today. I didn’t even have any orders working to buy it there.
I think this is shaping up to be more of a short covering rally. After 15 days lower and 1,000 pt winner, heading into a long Holiday (Columbus day is Monday) this isn’t surprising. Upside Targets on the bounce? 14.890, 15,035, and then 1/2 way back at 15,154.
This should give us plenty of trade opportunities over the next few weeks.
