it sure wasn’t pretty, but the market finally got the oversold bounce that had been brewing for the past few days. although the early strength faded for most of the day, some late action to the upside helped the averages finish the day at or above the highs of the session. most of the move was driven by a big bounce in the financials, so it’s pretty reasonable to assume that it was essentially a short-covering rally.
the internals were decent, with breadth finishing better than 2:1 to the positive with each major sector, save utilities, in the green. be that as it may, today’s bounce did very little to repair the severe technical damage, for those that believe, this market has taken, and like i stated earlier, has helped relieve some of the oversold conditions and set us up for more action to the downside. could another oil spike be in the works next week?