Oversold Bounce Gives Bulls a Day of Rest

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Yesterday, I could see that the dips were being bought early. I tried to sell it a few times and posted this in the chat room:

• IMPRO: Dboy :(9:50:18 AM) : short not working

• IMPRO: Dboy :(9:57:06 AM) : I should have known everyones short

I ended up making money on the day, but you really could see the early price action shift. Maybe part of it had to do with the old Jewish trading adage, “Sell Rosh Hashanah, buy Yom Kippur.”

Or maybe it had something to do with the PitBull’s trading rule that the ES tends to rally early in the day and early in the week.

Or maybe the ES was just oversold.

Or lastly, maybe it was just all of the above. Either way, when I look at the rally, it made perfect sense. That said, I still think as the week wears on, so will the S&P.