On a technical basis, the day that jump-started this rally was Tuesday, October 4th when the market put in a bullish outside reversal day.
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The market opens, and the indices head lower, stocks act well, and we then see a huge snap back for a reversal type day.
Last Friday, November 16, we got a compelling reversal, then got follow-through the next day to validate the reversal.
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But an encouraging and dramatic two-day upside reversal from the downside break that threatened the first two days of the week.
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We play off Bollinger Bands, divergences, reversal candles in the context of a range day.
It is possible that the OBV will not confirm a new high for GLD in the next day or two, but a downside reversal would be required to indicate that a short-term top was in place.
Either way, the market seems to be in glass-half-full mode, and IBD says to look for a strong continuation follow-through day within 4-7 days of the reversal, which came last Tuesday.
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Barring some major reversal in the stock, expect to see a lot more price target increases in the day ahead.
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Then, take a look at the way the 50-day moving average is about to cross below the 200-day moving average on the daily chart this is a sign of trend reversal, from up to down.
The record high level of fear and low level of bullishness near the March low last year was a big factor in having us watching the oversold conditions and our momentum reversal indicators, which in turn allowed us to move from 70% cash to 70% invested within one day of the low.
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