Follow Through

The market got a vote of confidence Thursday as heavy buying supported an almost 2% upside move on the S&P 500.

The move counts as a legitimate Follow Through Day (FTD.) While we recognize market players may have been holding off until the Fed’s bailout plan was passed, it still qualifies as an indication that institutions are willing to step up to support the market.

All market bottoms have had an FTD, but not all FTDs lead to rallies.

Next sign we’re looking for is Leadership. Any durable rally should have leadership. Without it we’ll consider any advance suspect.