Jaime,
>>>>>> The market had the third place record volume day yesterday, and it rebounded very smartly. Today it followed through with impressive strength. As I recall, there was only three days in history that the markets volume surpassed 1.1 billion. All three day marked an intermediate term bottom, and they lasted at least three weeks. <<<<<
Correct me if I am wrong, since I dont have the data now, but I believe that the DOWN VOLUME was much greater than the UP VOLUME yesterday, even though the DOW fully rebounded. If I am correct then it was a very high volume down day regardless of the price.
>>>>> The DJI is forming a huge double bottom, with yesterday's low (if it holds as an intermediate bottom) being higher than the intra-day low of September 1. <<<<<<<<
Per my basic rules I work on intraday lows not closing lows. I realise that such can be argued. We actually set a lower intraday low on Thursday when the DOW got to 7468. The previous intraday low was at 7496, so I cant say it was conclusive since I normally require a 50 point break of support line.
>>>>>>>>Many Indices are holding their ground just above a four or five year trend line. Among these the Dow, OEX, SPX, NDX. The Nasdaq being and exception but in extreme oversold conditions. <<<<<
Again I believe this becomes a discussion of intraday lows and closing lows. Only the DOW, XMI, HFX did not set a NEW LOW. Almost every other major index did set a new intraday low, including the spx, oex, ndx.
Heres a basic technical rule I follow based on statistics. In a negative market, if a significant LOWER LOW is produced and bounces immediately - such new levels will be retested within approximately 15 days. So far the only time that such has not occured was last OCT, where 6975 was not retested, and back tested it for 3 years. Actually I really need to go back further since I need 30+ occurrances to be considered statistically acceptable, unfortunately I dont have the data going that far back.
seeya
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