Well, that was some bounce. More than I expected.
$TRIN closed at .14 today. I took a look at other incidences where the $TRIN closed at or below .30 going back to the 09′ lows. There were 9 such incidences. 7 of the incidences were followed the next day by gains of anywhere from 2pts to 21pts. The other 2 incidences were followed the next day by a decline of about 1pt. Based on this small sample, looks like we could see a bit more upside tomorrow. Or famous last words.
This chart of $SPX uses the 5/10 method, the fastest moving daily set up that I follow. Even so, there really is nothing to get excited about yet, per this chart. What started today will have to get traction as what we saw today could have been little more than a good old fashioned mega short squeeze.
97% of today’s volume went into advancing issues so today was a 90% up day. 90% up days are important features of bottoms, minor or major. Just have to see how it goes from here.