Shortly after lunch, the markets sold off on high volume, followed by a strong rebound in the last hour. Still, we carved out a lower high, lower low and lower close. Oil was particularly weak, with many names closing near session lows.
The strength of the rebound, and the positive divergence creeping into the 15 minute time frame, could move towards some stabilization after two consecutive sell-offs. I expect that we may trade within the channel on the 15 minute time frame above.
I'm watching DRYS and Dry Shippers TBSI, EXM as the sector consolidates in a narrow range and on low volume following the recent high volume reversal. Price/volume contraction foreshadows expansion, so keep these names on the focus list.
2 comments:
I like the look of the double top forming in RIMM.
Agree, rounded tops are very bearish.
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