I’m All About That Bass ‘Bout that bass, no treble…

So where are we today?

The major indexes started out positive, then failed into 10:00 a.m. EST. Since then it has been a steady rally except for a bit of trouble between 10:45 and 11:30.  We need to see more and no way can we have a weak close.

1.The Russell 2000 via IWM lagged much of the day but is catching up to the S&P 500. Given it s much more oversold than the S&P 500 this s key.

2.The advance/decline line is decent but we need it above +3000 by the close. Right now around +2300.

3.A close above 103.32 on IWM and 193 on SPY would be huge as that is resistance for each ETF.

4.Off a puke day, Wednesday, SPY and IWM need to clear the puke day and then some  by next Tuesday’s close at the latest.

Clearly, today is a V bottom and that is what we saw at the August and September low. As we rally, then expect the indexes to find a level to build a base. Hopefully, base building occurs at higher and not lower levels from here.