After two massive down days to start off the week, stocks rallied hard this morning before u-turning lower in the afternoon.
The coronavirus-sparked selloff was sudden and violent, but they desperately needed this pullback. By just about every measure, all major U.S. indices were extremely overbought.
The only question now is how much more will the market fall?
To get some insight on the answer to that, I’m going to review an often-ignored index…
Even if you expect a pullback, it’s almost impossible to time the exact day or even week that stocks will fall. That’s why I always encourage traders to use hedges, trade diversified assets and use prudent stops.