I’ve been saying that the market was near a low, but I suspect that this is not the bottom. Most averages were higher, but the great majority of individual stocks were lower. A 2% bounce in crude oil was given credit for much of the rebound.
I don’t remember ever seeing a Dow up triple digits on more than 1,500 net declines. But bear in mind, this can straighten itself out and the market can rally for months on poor breadth. We’re just not ready to declare a trading bottom. At least not yet.
The Dow held its mid November lows and turned up from a very oversold condition, but breadth was horrible. The advance decline line is approaching its late September lows (arrows). This in itself is not a good sign.
Stephen Todd, Todd Market Forecast, www.toddmarketforecast.com, 909-338-8354, December 14, 2015
