Much like Oprah and her Pontiac giveaway years and years ago, the pessimism throughout the market has temporarily given way to relief in the form of 'buy'-signals-everywhere retracemnet. Indicators lines are crossing over and oversold conditions are beginning to reverse. This is very similar to early 2008 when Bear Sterns went bankrupt and the general market seemed to recover (albeit in a high volatility environment) prior to the crash later in October that year. Energy so far seems to be the big story at the moment with Citi calling it "the trade of the year," however has Barron's has reported there is a sharp divergence developing between oil's premium over discount on NAV. Zero Hedge has noticed that this earily similar to 2007 when mortgage defaults started to increase yet credit default swaps that tracked them continued to decline. In the meantime I feel this bounce should be taken advantage of.
Biotechnology has put in a 'buy' signal on the RSI(5) but movement upwards so far has been disappointing.