The markets are very moody.
Just when we got the S&P back to our 10% line, we're down 20 points this morning and back below the 50-day moving average (2,866), back at the 2,860 line that marks the bottom of our 5% correction zone on the bounce charts we've been using all week. It's a very disappointing setback and, if this is how we're going to go into the weekend – we are going to need more hedges!
At the moment (7:30), however, the 5% Rule's™ Bounce Chart™ looks like this:
We were all red except the Dow (which was at the weak bounce line) on Tuesday morning so this is still progress, but just yesterday afternoon we only had 3 red boxes left to capture and we would have been back to bullish. That's what's useful about the Bounce Chart – it keeps you from making bad decisions by making sure the rally is real before…