Huge day for the bulls today. You saw where on an intraday basis, the stop-losses started triggering all at once plunging the indicies over 3% each. But that was a good thing actually in that, it wiped out in one fell swoop, a lot of the weak hands, and left nothing but buyers to gobble up the depressed stocks.
Also equally impressive was the amount of volume that poured into the market as it rallied nearly 10% off of its lows. The volume support was there and that is important for this market in seeing follow through in the days ahead. Notice the channel on the Nasdaq, the index is trading perfectly within the range. It doesn’t make much sense to try and short this market, until it gets near that upper range.
Here’s the Nasdaq and S&P charts…
