Barring another wave of massive selling, it appears the market is trying to put in a near term low today and it looks like stocks are ready to bounce from their deeply oversold levels. So far, every rally attempt this year has lasted a few hours only to be met with aggressive selling followed by new lows. We’ll see if the bounce can last longer this time. Earlier today, the Dow Industrial Average tanked 565 points as oil plunged over 6% to $27 a barrel (lowest level since 2003!). Around noon EST, the buyers showed up (and a lot of short covering) and stocks soared. The Dow jumped 100 points in a matter of minutes and the buying continued well into the afternoon. That was it. Markets are ripe to bounce from here as they remain Extremely oversold in the near term. We want to see where the market closes on Friday and will have a full report for you this weekend. For now, suffice it to say as long as today’s lows hold, we have to expect a nice “bounce” from here. Remember, markets do not go straight down. With headlines like this crossing the tape and speak of a “Depression” from Davos this morning from a very famous investor, the market was way overdue to bounce. The key now is to analyze the health of this bounce (if the market can bounce).
NYSE LOWS LARGEST NUMBER SINCE AUGUST 8, 2011 WHEN 1,345 STOCKS MADE FRESH LOWS