Nature of the Beast

Although it is still premature to declare most major averages to be in bear markets, with the S&P, Nasdaq, and Russell all sporting rising 200-day moving averages (even if price is currently below that reference point), we know the mega caps in the Dow are technically in a bear, at least if your adhere to that technical analysis of the declining 200-day. 

Even if no bear is lurking around the corner, if this is going to be even a textbook deep correction within an ongoing bear market, then we should likely see initial rally attempts sold hard in the coming days if not weeks before truly do arrive at an initial tradable low. 

Of course, such a scenario has not materialized in recent years, with the bull owning the battlefield by and large. But that is the roadmap to keep in mind if fairly obvious setups, such as "buy the gap down this morning" fail to deliver sustained bounces. 

Also note, to follow-up from a prior post, in the CAT vs. DE battle, (weak vs. strong overall charts), CAT looks to be winning and dragging DE lower with it. 

I covered apart of my AAL short inside Market Chess Subscription Services into the initial move lower. 

Should this bounce attempt fail into midday, I have my eyes on a few other shorts. But, for now, I am looking see the nature of the kind of beast with which we are dealing.