Do you think there will be a rally tomorrow in the stock market?
I know its kinda hard to predict, but it dropped so hard recently don't you think there might be a rally soon?
- Anonymous1 decade agoFavorite Answer
I do for several reasons:
1. People (or informed programmed trading) were buying in at the close, even in the face of multi-year lows. Some of the reasons follow below...
2. The RSI is scraping bottom. This is a buy indicator.
3. The long term chart is showing the price at bottom trend line in a long term pattern
4. The last two day's purchasing was separated by a "gap" down. Many believe the market has a tendency to want to "fill a vacuum" - therefore, bounce back up to "close that gap".
5. Volume this afternoon, and therefore for the full day, was much higher. This may be a capitulation, it may not.
None of the above by themselves indicate a bounce. All of them together do.
I think we'll see an incremental move down at the open, for a percent or two, depending on where the opening bands are located, then we'll see a run up. We may see another selloff at the close as well, there is no way to know.
- A5150YleeLv 41 decade ago
Possibly, but remember that tomorrow is option expiration, and things alway get kinda strange then. Any other day, I would say probably yes, but on expiration Friday anything goes.
- Anonymous1 decade ago
The Dow futures are already up 170 pts at midnight eastern time.
The index is way oversold and overdue for a bounce.