A strong day today with the market (XAO) up 1.8% on average volume. Monday is often a low volume day so that looks OK.The Advance/Decline Ratio was solid at 2.1. And UpVol/DownVol Ratio was a strong 6.4. That ratio is rarely over 5. Given the strength of the market today, we may see a day of two consolidation, that happened the last time we had such a strong figure. On other instances, however, the market kept on with the job for several days.
Whatever. That ratio appears to mark a clear short term bottom.
On the weekend, I noted that the market was sending clear signals that a short-term bottom could be in. Today's action cements that view.
The Gold ETF lost considerable ground today, down -1.33%. The uptrend line has broken to the downside and key indicators have all turned down. The weakness in the Gold ETF also supports the notion of a bottom in the stock market.
I would expect further upside.
Remember, tomorrow is the start of Spring and historically the worst month of the year.
Maybe September won't be so bad this year. Oh YEAAHHH.
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