Even the move below 1318 and then a reversal and move above as quite impressive.
The choppy characteristic today is also indicative of equity markets trying to hammer out a low and begin a legitimate change in trend.
However, we must continue to remain above the 1318 level and certainly not close below it.
The healthiest thing for this market right now is for the advance to continue in constructive fashion. We remain in the buy weakness mode and will so until a violation occurs.
Below you will also find more models that either behaved as needed today or confirmed the intermediate term low.
The fear model made its secondary confirmation of a major intermediate term low having been put into place. Yet more evidence of higher prices on the way.
The momentum model we spoke about yesterday, did precisely what it needed to do in order to send a bullish signal.
As you will recall, we needed this model to turn up from its current levels, even though it had not reached an overbought status.
It did not let us down.
Now it needs to move back and forth at higher levels in order to remain in a positive light.
The TRIN model completed its 1.....2......3 pattern and has also confirmed a major intermediate term bottom being put into place.
All in all things are starting to look better, but don't think we are out of the woods yet. The market remains on the tightrope and needs the price action to confirm everything our models are indicating.
I feel confident that this will happen, especially with all the bear market talk I am hearing and the large increase in all around bearish sentiment.
We shall see what the market brings us, but continue to hold fast to the buy weakness mode we have advocated for the last week or so.
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