BROADCASTS.com

b'Extreme Volatility
\\nIt was another extremely volatile day in the U.S. stock market. When I finished my podcast on Monday and we had that big drop, I suspected that Tuesday might be a reversal Tuesday.\\xa0 So I thought we\'d get a bounce on Tuesday and, in fact we did.\\xa0 We had a big rally; the Dow was up 400 points or so. Then this morning the Dow opened up down 500 points.\\xa0 In fact when I woke up this morning, a couple of hours before the market opened, the Dow was down closer to 600.
\\nReversing Up
\\nTypically when we get these huge sell offs right on the open because overnight weakness, what generally happens is that we end up reversing up - getting some buying after we open the markets down, and that\'s exactly what happened. The markets ended up recovering the entire loss.\\xa0 We closed around the highs of the day: the Dow up 230 points and the NASDAQ up just over 100 points. This is a reversal.\\xa0 Checking the numbers, the Dow did not take out yesterday\'s low but the NASDAQ and the S&P did.\\xa0 All the markets closed above the previous day\'s high.
\\nBear Market: Primary Trend is Down
\\nI\'m sure some people will look at these numbers and say, "Hey, this is a technical reversal, we took out the lows we closed above the highs,\\xa0 it\'s an outside day and this is maybe the end of the correction.\\xa0 I do think potentially we could have more to the rally.\\xa0 But I think the rally is the correction.\\xa0 I still think this is a bear market.\\xa0 We narrowly avoided the Dow Theory sell. The Dow Theory is still on a buy, and now we have a bit of a reversal, so maybe this correction has a little more legs. The correction being the move up.\\xa0 I think the primary trend is down.\\xa0 I don\'t think today\'s reversal is big enough to have put in the low of this correction if it is a correction. So I still think that we are in a bear market.
\\n
\\n 
\\n
\\n 
\\n
\\n 
\\n
\\n \\n\\nOur Sponsors:\\n* Check out Rosetta Stone and use my code TODAY for a great deal: https://www.rosettastone.com/ \\n\\nPrivacy & Opt-Out: https://redcircle.com/privacy'