This bounce will tell us a lot about how much gas is left in the tanks $study

As we make a move to the upside, we will watch the breadth reading, looking for those divergences that might fore-shadow a soufflé collapse.

 

We have our Zweig boxed in between lower highs and a series of higher lows now.

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Watching the bottom on the CVI:

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At one point we had over 80% of all stocks above their 40 day moving average.  Yesterday there were just 55%, so we want to watch this chart during any rally.

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The NH/NL has recovered we want to stay above 70 on this one:

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For the trenders, both are now owned by the bear market.   The McCSI could go neutral today.  We think the CUM NH/NL might need one more day to absorb that spike from last week.

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