Lets start by looking back at the commentary from Briefing.com on 10/10/02. There is a reason why I post it every day because we can learn from the past to help us predict the future. When will we see commentary like this again from Briefing.com?
Message 18100013
SNIP: From Briefing.com: General Commentary - Yesterday we noted that the Nasdaq was probing for a bottom near 1100. Based on today's broad-based gains it looks like that floor will hold, and that the index has begun a corrective advance. How long and how far we run will depend on a variety of factors, but if we can build on the gain tomorrow the market will have taken the first steps toward changing the extremely bearish mood on the street.
Volume was relatively heavy with the NYSE trading 2.05 bln shares and the Nasdaq trading 1.83 bln shares... The volume totals were unusual in that volume at the Nasdaq typically outpaces volume at the NYSE... DJTA +4.2%, DJUA +8.2%, DOT +7.1%, Nasdaq 100 +5.2%, Russell 2000 +2.8%, SOX +6.2%, S&P Midcap 400 +4.2%, NYSE Adv/Dec 2046/1236, Nasdaq Adv/Dec 2053/1298
12:44PM Near-Term Bottom? The price action is somewhat encouraging today as the major averages are actually posting notable intraday gains. The nature of today's move suggests the active trader would be well served to at least address the question of whether today's rally might be 'legitimate'. Put another way, might the current intraday move represent the beginning of the next leg higher?
We already described today's price action as 'encouraging'. That statement seems to hold water on its face, but what does it really mean -- the price action is encouraging? It means the averages are headed higher of course -- yet just as important is the manner in which the markets are managing their gains.
Total volume traded is notably heavy to this point as the NYSE has already surpassed the 1.0 billion share mark while the Nasdaq is currently just shy of 1 billion shares. Perhaps more importantly, the market internals are generating bullish reads behind today's strong volume. On the NYSE, advancing volume outpaces declining volume by a 2 to 1 margin while the same ratio is generating an extreme reading of 9 to 1 on the Nasdaq. |
