Is this the beginning of a tumble or are we on our way to 400?

Well charts usually do not lie, here we have a clear bounce from the lower band of the channel today. I for one believe that at this point market can go either direction. Either this is another end of January or we are in for a further pull back to 350 levels. Either way right now these waters are very hard to navigate. We shall see what Monday brings! However, the volume shares traded are significant! also 65 EMA has been touched with much greater RSI and penetrated through! Indeed, this is a little different than what happened end of January!

Comment:

Merket opened on a good note today. Under the hood it is getting better for the market overall, however at this point in time I don't want to be in any technology stock! I think heavy pull backs are over for now (can be short lived), and definitely we are not heading for a market crash! However, there is massive rotation out of technology on back of last week trend!

Comment:

Well Technology confirmed my morning prediction by end of the day. Market as a whole is starting to hold. Vix is cooling off and volume has evaporated out of the market. Translation: Dip buyers are in their position and sellers already closed their position. Market movement right now is at mercy of new wave of sellers or new wave of buyers. I think we are going to see more stability in the market this week however, the trend in Tech sector has not changed, there will be more sell offs in tech! Healthcare is finding its foothold. Energy and Finance are the golden boys of the market right now! Is it buying time? Yes, but you have to be extremely selective. This is not early Nov where you could close your eyes and run your finger on your watchlist and randomly pick a stock and be up few points the next day!