January 20, 2022, 3:30 pm EST
Rebound Failure
More than +400 points of intra-day gains from Dow Jones faded away quickly. S&P500 and Nasdaq suffered the same results as rebound failed within a day.
Please see the featured chart of Amazon (AMZN) where it showed the online retail giant kept making new lows. It represented most of the technology-related stocks. Technically, making new lows or breaking down available support levels means a confirmed downtrend. Failing below 200 day-moving-average means the underlying stocks are deeply troubled which applies to about
60% of stocks.
The best strategy in the type of decline market is to cut a loss short and avoid adding position at this time. Make sure existing positions in the portfolio are strong enough to go through the coming storms.
