It's not unusal for a market in a short down trend to revisit the previous day's low. However, the tumble that began at 0945 ET was a little curious for the following reasons:
- The Financials remained strong during the tumble. It's a little unusual in the past year for the Financials to be strong while the rest of the market is weak.
- The dollar is substantially weaker today than yesterday. Lately, this has been a bullish signal.
However, the rest of the market was weak including the small caps. Buyers correctly waited for the market to test yesterday's low before jumping back in. They traded the market all the way back to the 0930 ET open.
Charles
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