Is the market due a bounce after yesterdays 500 point decline? Odds are very high on a short-term basis, a bounce is due…. just check out the VIX.
During these times I am of the belief it is can be helpful to look at long-term charts for a little perspective. I am of the opinion it is fair for us to ask….”Did the decline over the past 8 business days get us very close to long-term channel support?”
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I hope the markets don’t move any lower, yet as the book cover says…”Hope is not a strategy!”
Long-term channel resistance came into play earlier this year, which from a strategy perspective was suggesting to lower/harvest equity exposures up against long-term channel resistance. I suspect this resistance has had much to do with the market making little net progress since the February highs.