sp'daily5
Summary
So, the market rallied for a second day, but really, this was expected, with the market having seen a 60pt fall from 1897 to the Tuesday morning low of 1837. Typically, it is often the case of 2 steps forward and 1 step back (whichever way the primary trend happens to be).
Barring a break into the 1880s, this is surely just a bounce, although an especially annoying one for those who have been holding short since early Tuesday.
Despite today's second day of gains, the MACD (blue bar histogram) cycle remains negative, with a more intense downside wave viable within 2-3 trading days.
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Closing update from Riley
I certainly agree with just about everything he says, not least in terms of price action. Although I would argue we have seen some aspects that we didn't see in 2013.
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a little more later...