We got a nice snap-back rally today after an early morning sell-off on some worse than expected economic reports. The S&P 500 and Dow bounced off of their lower Bollinger Bands. All the indices, and many individual stocks made hammers today. The S&P also bounced off of the trendline that’s been support since April. So I can’t argue with all those bullish signs. The market is oversold (see the stochastic on the chart below). And could easily have a little bounce here. But I’m not too excited about the prospects becasue we are in earnings warning season, it’s a holiday week, and we’re still stuck in that 7 day trading range.
Here’s the S&P 500′s chart:
