It's almost always a bearish sign when a stock sells off after a good earnings report. If a stock that has had a big run-up falls on a good earnings report, it may be a sign that the uptrend is over. The opposite is also true. When a stock still rallies after a “bad” earnings report, it is a bullish sign. It’s also a bullish sign if the stock market rallies after a negative economic report. Many people get stubborn and try to tell the stock market what to do. Smart traders listen to the market instead.
