Closing Comment
As you may remember, I had mentioned that 10/10 could be a low point. I don't know what kind of a low, yet. But we seem to be heading for that date. Given thatCITs (change in trend) can vary by one or two days from their ideal date, tomorrow or Tuesday could qualify as well.
The market became very oversold very quickly, and this finally causedsome bargainbuying and short-covering at the close,trimming the day's losses. This does not mean that we have seen the low -- unless there is a strong push to the upside from the opening bell tomorrow. A successful test of the lows would also be bullish. The daily indicators have retained their positive divergence and this is a big plus. Also, the QQQQ has also remains positive vis-a-visthe SPX. And, the last two days saw very heavy volume. This is also a bullish sign after a prolonged correction.
The oil futures have traded below 62 and this is bearish for oil and bullish for the stock market.Since the market seems to be concerned with inflation, a continued decline in oil would quell those fears.
Being oversold with positive divergence in the indicators as we approach a CIT time frame is the first step to a reversal. Now we need to see some genuine buying coming in. We still need to get the A/D to go strongly into positive territory to confirm that a new uptrend is under way.
o:*:h
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