Shorts Jump, But No Follow Through

A massive rally no-doubt has many short sellers running for cover. Volume on Wednesday’s session just barely qualifies as accumulation from institutional players, but it won’t be until next week that we begin to looking for accumulation as a Follow Through Day signal.

Follow Through Days occur after four days of a bottom and are marked by heavy buying with one of the major indexes up near 2%. This indicates that the buying is real and not just short covering.