The question is whether the 2016 sell off is just an extreme bullish correction, and not a clear out bear collapse. Current action suggests the former, which means the secular bull rally from 2009 lows is still in play - but we are likely nearer the end than the beginning - which isn't the best news if a bull. However, if this proves too, new 52-week highs are more likely to happen before sellers retake control.
Both the Russell 2000 and the Dow Jones Index finished the day net bullish on technicals. The Russell 2000 also came with a bull breakout. There is plenty of room before it gets to the 200-day MA.
The Nasdaq ticked over with a small gain.
As did the S&P
The Semiconductor Index will tag the 200-day MA tomorrow.
Tomorrow will be another chance for bears to try again, but action over the past few days suggests a trade low is in place'
You've now read my opinion, next read Douglas' and Jani's.
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com, and Product Development Manager for ActivateClients.com. I also trade on eToro and can be copied for free.
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