They call it stormy Monday
But Tuesday's just as bad.-- The Allman Brother's Band
One of the characteristics of the 2000 - 2002 bear market was that Monday's typically were the worst day of the week in terms of percentage losses. Investors and traders went home on the weekends to lick their wounds and came out selling on Monday's.
Since this correction started in the beginning of May, the action of the markets on Monday's has flashed back to the 2000 - 2002 bear market. Mondays have seen terrible downdrafts that hardly see a mini relief rally, let alone any hope for an up day.
Since last week was the first decent week in the last 6, several traders have asked me if I think the market can continue the rally. Before I issue the all clear on this market, I'd like to see a pre-opening down move on the Monday morning futures, followed by a steady and strong market for the remainder of the day. That would give me some indication that the we have moved from a liquidation phase to a buying phase in the market.
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