I’m skeptic about the rebound before the close, although the hammer formed right at Fib 38.2 or for some ETFs on MA 200 does seem like a bottom pattern, but the most important factor about the bottom – the capitulation volume is missing.
So the bottom line, rebound, could be, especially when we’re facing the famous very very bullish Monday again. But don’t hurry in mocking bears again (as I saw in my forum). For months they’ve been mocked, bashed and yet they proved their virtues during the past 4 weeks and they’re definitely not finished yet. Even if bulls are lucky enough this time to be unharmed eventually, remember be thankful, after all, the battle between bulls and bears will go on and in the end most of us, no matter bulls or bears, are not the winners.
In case someone asks, what happened when both VIX and SPX closed in green the same day. Well, here’s your 55% chances a red Monday.