In case you didn’t see the chart yesterday, small cap stock pick Spicy Pickle (SPKL) finally broke under a key support line that had been in place since mid-April. It was roughly at 83 cents. SPKL had traded as low as 81 cents last week and early this week, which didn’t bother me too much since we never closed under 83 cents. On Tuesday though, too many owners were tired of waiting. The stock hit a low of 70 cents…..and came right back to close at 78 cents.

So, am I bullish, or bearish? Neither just yet, though based on the way the stock acted on an intra-day basis, I’m actually leaning towards bullishness…depending on what happens today.

That deep low - and subsequent recovery - may have been just what the doctor ordered….a flushout of all the Nervous Nellies, and a significant buy-back following the move to new multi-week lows. In other words, there were lots of sellers in the early half of the day, and then lots of buyers in the latter half of the day. (The shape of the say’s bar can tell you quiet a bit about the market’s psychology.)

That said, today’s the critical day. The bulls really need to follow-on from yesterday’s efforts and push SPKL at least a little higher today. If not, some more Nervous Nellies could use yesterday’s slight rebound as another exit opportunity…which is comparatively better than the low of 70 cents.

I’ll post more thoughts as needed here.

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