Bounce

After an intraday recovery yesterday and a big bounce in Japan last night, continued worries about nuclear power plants brought the bears out to play. It didn't help that Apple and International Business Machines were downgraded and there was talk about supply-chain issues for technology stocks due to the disruption in Japan. Volume was quite heavy today, making for another day of technical distribution and the continuation of the lower low pattern.  On the bullish side, there are also more signs of fear as seen in the opening spike of the put and call ratio and the rapid jump in the VIX.  Furthermore we had some weakness into the close and less stocks making new lows.  We are still hostage to the news flow, but more signs are pointing to a potential bounce.

Related posts:

1. Lazy Bear
2. Waiting on Good News
3. 08.16.10 – Perfect Bounce at 50% Retrace
4. 06.30.08 – Small Bounce to R1
5. 02.05.09 – Impressive Recovery Past R1