It seems like I’ve made this same comment on all of the rally days of the last few weeks — volume was lacking. That was about the only thing wrong with today’s move. It’s also interesting to note that the S&P 500 stopped right between the two levels I mentioned this morning. It’s just a hair (0.31) above its 200-day moving average and two hairs under 1200.

T2108 shows that today’s rally was more constructive than those of the last week or so. That indicator looks like it’s just completed a triple bottom.

So the market’s working off the oversold condition that T2108 identified. I won’t pretend to know whether the next big move is up or down but given that the Nasdaq and S&P are back above their 200 DMAs and the low level of T2108 my guess is that thee’s still more upside to come.