Although the buyers who were feeling a bit left out after yesterday’s monster rally had an attractive intraday situation to work with, the early afternoon push by the troops proved to be a bit early, as the brief foray into positive territory by the Dow and S&P 500 opened the door for a fresh wave of profit-taking that lasted into the close. Still, despite the average losses of 1.97%, all in all it was a pretty constructive day for the market, which was able to digest some of yesterday’s gains on decreasing volume.
The mild selling we saw to close out last week set the stage for some big gains, and the question is if some consolidation here will allow the market to make additional progress in the days and weeks ahead. The market has been able to make some decent technical progress and the indices were able to hold above the resistance levels they broke past yesterday, but we’re still dealing with a protracted V-shaped bounce off of the lows from the 9th. We’ll see how it goes, but while the action over the past two weeks had been encouraging, it’s still way too early to be declaring the end of this bear market.