Today's afternoon rally appears to be a 3 wave countertrend move. If so, lower prices will likely be seen tomorrow. Markets did manage to close above the worst levels, but not by much. Although a rally could materialize at any time due to the extreme oversold condition of the markets. Any rally should be repelled by the 50dema should it make that far. One interesting phenomenon is the annual selloff in technology in February. This has been so dependable over the last 10 years that it would be surprising not to see it again this year.
AMZN beat on all counts, but is only up $3 afterhours after being up as much as $7 to $8. If will be interesting to see if it can hold up tomorrow. NFLX was today's big winner and it looks like a buy after this market correction is over.
Markets appear weaker than even the drop in the indexes would indicate. While the McClellan Oscillator is very oversold, other measures of breadth remain well above bottoming levels which means there's alot more of this correction ahead.
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