Here are some charts;
Breadth flip via stocks up and down 25% or more in the last 65-days.
Spikes in 1-month new lows often lead to a dead cat bounce.
When we get to 200 or more stocks down -25% or more in a month the bounce will have more sticktoitiveness.
Bottom line; I would tread carefully here. I were looking to play a bounce I would first start with the indices, then I would look for stocks that reacted great to their earnings report and try to buy those, for example; GRUB.
STOCK OF THE WEEK RECAP
Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at email@example.com or 646-480-7463.
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