Heavy Selling Pressure Ahead of Major Releases Is A Bearish Sign


Yesterday, stocks retreated after a massive 10% rally in less than two weeks. The market was grossly oversold and shorts were squeezed ahead of earnings season. That bounce quickly ran its course and the selling was persistent Monday. The litmus test came yesterday after the close. IBM beat estimates and the stock was pounded in after-hours trading. VM Ware has been a tech leader and it traded lower after posting results. The silver lining throughout all of this turmoil has been earnings. If the market can’t climb after the strongest companies announce, the rally is over. Banks have been beaten down …

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