After weeks of dealing with a market that acted in a very artificial way as it went straight up with hardly a pause, we are finally experiencing more "normal" action, albeit mostly to the downside. After a very brief attempt at a bounce this morning, we had some pretty strong downside follow-through once we took out yesterday's lows. Given the news flow and the damage that was done on Tuesday, that wasn't too surprising. We continued to struggle until the early afternoon and finally were oversold enough to put together a bit of a bounce, but it started a little early, and we gave some back at the close.
That is exactly the sort of action you'd expect to see after the market takes a big hit. We don't fly straight back up like we so often have done but, instead, we shook out more weak holders and managed a mild bounce. The dip-buyers were nervous enough not to pile in this time, but there were still some bargain-hunters who decided to put some money to work.