Volume today is low to modest — certainly, nothing particularly impressive.
Whenever
the markets move significantly in either direction, my kneejerk
response is always the same: Check the volume!.
What we see today is consistent with a mildly oversold bounce, but not a whole lot
more. Given the nasty selloff we saw last week, its certainly not all that
unexpected. I wouldn’t chase this until we see some real conviction,
and a penetration of prior resistance.
With PPI and CPI coming up later this week, we’ll find out how afraid
of inflation fund managers really are. I’d rather stay on the sidelines
until the fog lifts (you can’t send the kid up in that crate in weather like this!)
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