Major Bearish Reversal Count: 2 in 4 Days
The market just failed off highs after rallying this morning. After trading higher by over 100 points, a rallying dollar and falling oil tooks its toll and equities failed. The market fell over 200 points in just the last hour of trading and is down over 100 points now.
We are following the growing number of bearish reversals in the equity market to confirm the potential topping action occurring.
As we talked about last week, the cub has been born. He is growing up and may be an angry bear soon.
A few more bearish reversals like this morning will put the market solidly in correction mode and we will look to be active on the short side. The market will not turn in a day after a large 60% rally. The topping process takes time and today adds to the bearish argument.
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