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.
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