Bear Market Bounce Likely

It is critically important to keep this bounce in perspective. Watch the price action.

PRE-OPEN MARKET COMMENTS THURSDAY – Yesterday the market tested the bid after a very strong rally Tuesday. Buyers supported the gap down before it was filled and this sparked a nice rebound that almost closed above the high from Tuesday. I believe the table is set for another bid check this morning and a rally. It is important to remember that this is only a bear market bounce. We do not know how high it will go or how long it will last. If the bounce is brief and shallow, we have more work to do on the downside. If the bounce has good follow through and we get back to the 100-day MA, it could gain traction and it will confirm support at the low of the year.

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