Ten Days ago the Bears were dancing that at long last the floodgates were opening and now we are in a Strong Bounce Play where it appears the Bulls have the upper hand. The Champions of both sides are full of chatter, but in essence it comes down to the Blind Leading the Blind!
I am happy to say that of the two Market Scenarios I gave you, Scenario #1: Quick Recovery is winning:
Ten Days later here is where we stand with an impressive cushion of 100 points as we expect no more than a -3% Drop to complete the Inverse Head and Shoulders I predicted.
Here is the standard picture of the eight Market Indexes which shows the progress to a Double Top with the Small Cap Russell 2000 (RUT) leading the way:
Fakey’s usually occur for %B <0.7 and the S&P 1500 is right at that reading, so it is a toss up.
This next picture using Buckets is the most encouraging as the Market seldom dies with 20% in Bucket >1.0:
We see a big improvement in %A-E for Accumulation vs. Distribution, but there is still work to do:
And last but not least, here is the most encouraging news in six weeks since the top in all the Market Indexes:
Have a Happy!