The dollar is up. Oil is up; copper is down. Gold and silver are down. Bonds are up.
Yesterday the market followed through on its previous day’s move off the low. It was one of the biggest up days of the year. The S&P has moved off its rising 50-day MA, and the Russell has bounced off the bottom of its 4-month range.
At a time the bulls needed to step up and defend their turf, they did so. It’s encouraging, especially when coupled with several high-profile companies (AAPL and others) also doing well.
From here the indicators will confirm the rally attempt. Failure to improve would lead to the market turning around and heading right back down. The AD line needs to continue up. The AD volume line needs to get above 0. New highs need to expand. New lows need to disappear.
This is step one. Now we either get confirmation or nonconfirmation.