Yesterday’s move was a home run in terms of price and breadth. Big quality candle moves off the lows can be indicative of an intermediate low. One way to judge is to use stochastics ( I use SMI rather than the traditional stochastics ) which measures price and the McClellan oscillator which measures breadth. Weak markets will travel to the overbought area and roll over. Strong sustainable markets will stay overbought which bodes well for the future.
Currently the market is in the low volume holiday week whereas exaggerated moves are the norm. THis should bode well for the bulls especially given yesterday’s move. Portfolio is still at 20% long but accumulating now.