Well the bulls finally pulled off a rally and stuck to it through the entire day. Despite a bad jobs and GDP number, there wasn’t anything that was going to stop them from finishing in positive territory today. It’ll be interesting to see if they can keep building on this rally. If so, I may start to slowly initiate some new short positions in the days ahead if the can keep the momentum going in the mean time.

In any case, below is a snapshot of the Worden T2108 below. Based on historical data, the market is still extremely oversold, which does worry me about trying to get in new short positions too soon.

The second chart is that of the NYSI Advance/Decline with a Stochastics overlay included. This is one of my favorite indicators for determining market reversals, and as you can see, the indicator is showing that the market may indeed build on today’s rally and see some more bulls come to the table and buy up the cheap shares (before ultimately meeting their fate of an untimely sell-off to new lows).

Here’s the NYSI Market Reversal Indicator.

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