I definitely see healing going on as the markets flatten and seem to be consolidating. It seems that the markets have accepted the fair value and prices are sitting relatively flat. I will say that this morning’s rally attempt got shot down hard, but looking over the last 3 days we seem to be holding steady on the downside. So … selling has decreased momentarily.
I am fighting myself to not put on long positions, although I am very tempted … I think we are still 1 – 2 days out from a buy signal and would prefer to wait to see what Monday brings us.
My indicators are telling me that we are still in bear territory even though prices are stabilizing. Everything is flattening, which is good, but all it will take is some bad news out of Europe to start the selling process again.
A strong day or even mildly strong day on Monday will probably kick me into a buying mode.