kianator

Is It Time to Buy? What History Shows

All will be bear market rallies until the S&P 500 monthly chart closes above the 10 EMA. Very reliable (yes, lagging especially on a monthly chart) indicator to tell you when the long-term market trend has changed from bear to bull.

Volume and money flows will indicate how far this rallies goes.

SPY volume was actually 80 million less yesterday than on Friday's rally. See if that continues to give you a good idea of how long this pre-santa claus rally lasts.

Liquidity Is a Problem, But There Are Positive Signs Nonetheless

Yep, I concur with the author. Big money still has not returned to the markets as the QQQQ's & SPYs total volume on Friday's job reversal rally was lower than the so-called bottom rallies on Oct 10th, Oct 28, and even the Nov 21st (Fri. options exp) rally. Volume decreased after each of these days.

This coming week will be a good market participation test as a weekly close above S&P 900/Dow 8850 would mean we are setting up for a possible test of the 50 day MAs.