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.