We said the bears might be waking up and they are dropping clues they might be ready to rumble.
The first blow came on Wall Street’s lunch break at the bears cracked the first wave of support and the second came when they got they second-straight win on the S&P 500 – a feat not accomplished since the beginning of February.
These developments, along with a negative Monday close, could lead to a test to the next waves of support for the major indexes.
The bulls did show some signs of life after making a push higher at the open and by keeping the losses to a minimum. They also held the VIX below 15 so no real damage was done by the bears. However, we have said the bears strike hard and fast and we will be happy to ride their backs by playing put options but we aren’t ready to give up on the bulls until we see a few more signs of weakness. (continued…)