As I noted yesterday, the volume at Tuesday’s low was much lower than at the previous April low. As I look over the data, I also see some bullish divergences compared to the prior lows. Here’s a chart of Buying Pressure minus Selling Pressure as an example.
The markets are moving higher today, but we can’t really say whether that is just a short-term bounce or response to a bottom Tuesday. Compared to the low on 8 March, it looks like Tuesday was a bottom, based on lower volume and somewhat improving internals. It was not a slam dunk though, so we may well see lower-lows ahead.
I have taken a small trading position in a 2x Nasdaq ETF
just to put my toe in the water. The
market should tell us if the bottom is in by stronger moves higher this week...or
further weakness. As always, we’ll see.
