The Bulls come roaring back.

But Tuesday’s buy-volume didn’t match the heavy distribution of Monday.

It’s hard to see and advantage for shorts right now.

As price action points upward, a record number of short sellers are bound to feal the itch to cover.

The S&P 500 has basically double-bottomed. Odds are there will be some type of test to the upside.

What we need to watch for is a Follow Through Day, which happens between four and 11 days of a potential market low with one of the major indexes up close to 2%.

We are also on the watch for new Leadership to emerge to give us and indication that a sustained upside rally is being backed by institutions.