I’m not exactly sure who is buying this rally based on the volume, but I really didn’t expect this type of snapback rally. Today I received a reverse signal on my indicators (although I always give it one day to whipsaw) so if my indicators stay bullish tomorrow I’ll be covering my shorts and picking up some long etf’s to start.
With the distance the Nasdaq has covered in the last 4 days, we’re right at the June highs and likely to pause. With Obama’s speech tonight it’s a wildcard as to how the market will react. Caution is advised to both the bulls and the bears.
