We had a classic bear market rally today. Today’s 4% rally reminded me of spikes back in 2002, which, in hindsight, only provided opportunities to sell at better prices. I have no clue whether this rally will also fail — only time will tell. One thing’s for sure though, the market isn’t yet out of the woods. We have the makings of some double bottoms but they’re a long way from being confirmed by breaking the February highs.
At least for today, the Fed got exactly what it wanted. The Fed’s liquidity injection gave the financial sector a huge boost. Here’s the BKX, which was up a whopping 9% today:
Here are the Nasdaq and S&P 500 charts:
only one upgrade
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Down | Down | Down |
| Intermediate | Down | Down | Down |
| Short-term | Lat(+) | Down | Down |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
*** I’m simply using the indices’ relations to their 200, 50 and 10-day moving averages to tell me the long, intermediate and short-term trends, respectively.
Hi Mike,
that’s correct. Days with large gains or losses do occur primarily in bear markets and seem to be clustered at the bottom. I have published a table and some charts for the +3% / -3% days in the S&P 500 in my Blog
“Trade’s Quest”. Please klick on the charts for a larger image.