The break away on strong Tick and AD on a moderate VIX after an early morning first-reaction buy at the 500-ema and then again at the VWAP made this look like a trend day fairly early on. And now we’ve definitively broken the down streak from the late September highs, and intermediate-term indicators are firmly pointing higher. That said, we are starting to push into short-term overbought status. In past rallies during this bull recovery run, of course, such readings have held for extended periods.
