I would venture a guess today showed a bit of capitulation selling at the lows of the session. Volume was running much higher than Monday's pathetic volume level as the market once again turned to Europe as its excuse for selling off. Buyers began to step in after 1pm and continued through till the close. It is going to take much more volume to surge back into the market to regain its footing, but today is the type of day you want to see for the first day of an attempted rally.
We are certainly not going to get ahead of ourselves and declare this to be the bottom of the move off March highs. It is encouraging to see the amount of volume coming into the market today. However, if it is just one day wonder we'll know sooner rather than later. To recap, today was day one due to the amount of volume and the major indexes closing near their highs of the day. We'll be looking for the market to follow-through on a strong day with big volume over the next few days.
Who is going to leave the Euro this summer? It appears the masses believe the Greeks will leave the Euro. However, Germany is the one who should leave the ill-fated currency. Why should the Germans be forced to bailout the Eurozone? Will the people of Germany continue to vote for bailouts of countries that are irresponsible with their spending? Germany should be the country to leave the Euro just on principle alone. In the end, it all boils down to price and we'll react accordingly.
Remember, today was a solid day for the markets. We need to see more from this market before we can confirm a new market rally. Volume is very important here and if we are to confirm a new market rally volume will need to rival today's level. Keep in mind, cut your losses!
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.