About Shark Watch
Wednesday, August 13 - 4:22 PM
Although it was looking like the bulls were going to be able to engineer a pretty decent bounce earlier this afternoon despite the 3% rally in crude price, the averages rolled right back over in the final hour to close the day in negative territory. We’ve been saying that the real test for this market would come when oil bounced, and while the averages were able to close well off the lows of the session, the sharp drop in the final hour doesn’t engender a whole lot of confidence.
The lack of conviction we’ve seen now over the past two days further reinforces our suspicion that we are currently dealing with yet another bear market bounce. That said, the averages remain within their intermediate uptrends and the outperformance in the Nasdaq and Russell 2000 is certainly a market positive. We’ll see if the bulls can hold here, but we still think that it’s just a matter of time before the many negatives this market continues to face will begin to outweigh any improvement in commodities and the greenback.
Have a great evening and we will see you tomorrow.