Obviously 2 way volatility really expanded in the market this week. Does that mean a bear market is starting? My answer is that I don’t think so just yet. Friday or Monday is likely to start a rally attempt. We have stocks like AMAZON, that are really deeply oversold and hard pressed to go much lower.

Of course oversold stocks can always get more oversold, but probabilities do not favor it. In the case of AMZN a 10 day RSI is at levels that always produced either a bounce or at least a sideways pattern over the last several years. Let’s see what the bounce tells us. But I would not chase the short side at these levels. And I think there is an even chance for new all time highs in February.
Thanks,
Joe

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