This morning, I suggested you could “Sell the Bounce.”
What I mean by that was that from the deeply oversold conditions, traders could use any levitation over the next few weeks (or months) to move to a more defensive posture.
I expected whatever rally there was to materialize, starting today, and going on until it became apparent that QE3 was not meant to be.
Alas, the bounce was not much to write home about — it certainly wasn’t enough to get exciting about selling into.
So what does this mean? Are we going to see even a little oversold rally, or is this puppy DOA?
What Say Ye?