Sometimes volatile markets can suggest exhaustion of selling

Volatile markets denote uncertainty. Since bull markets live on comfort and knowledge of higher prices, any kind of uncertainty hurts such bulls. When markets begin to move randomly, up and down, this is a sign that the bulls are retreating.

This happened the world over, last week, including, India.

But, Friday’s price action (Feb 9) was volatility with a different meaning. At some point, even the bears get uncertain. My sense is that Friday’s price action in the U.S. markets was an exhaustion of selling denoted by uncertainty among the bears. After many wild intra-day swings, the US markets closed higher. This suggests buyers were coming at lower levels, with support coming in at previous lows.

based on this analysis, I start the new week (Feb 12) as a buyer.