Last Friday I was thinking we might rally up hard and possibly hit a new all time high, but that rally (from Thursdays low) stopped at the open instead. It shook me out and I missed this drop, which prior to that bounce on Thursday I was short. SkyNet is good at fooling people, that's for sure. But now that we are at support in the futures and officially oversold on the 4hr, 2hr, and 1hr charts, it's a buy... at least for several days.
And I think we are off to see another new all time high as this drop will have woken up all the bears I'm sure, and the market loves to squeeze them. We should expect a rally to start right after the open, and it should continue all day I suspect. If you look at prior times when the RSI got oversold on this 4hr chart you'll see it produced a 100-150 point rally in usually about 2-3 days. It does it time and time again, and this time should be no different.
Never forget that the market goes up way more then down. And I suspect that every pullback will be bought as trapped bears use it to close out shorts. In short, today is likely the end of the down move until a new high is hit. So today is a strong buy. Have a blessed day.