If you felt like a yo-yo over the past couple of days watching the activity on Wall Street, you’re not alone. After yesterday’s sharp losses, the market came back with a vengeance and erased most of the deficit.
The good news of this roller coaster ride is that there seems to be a threshold where buyers can’t resist stepping back in and pushing the market out of the doldrums. If these lower levels hold, I would view this as a stepping stone which may form the basis for further upside moves. Of course, Fed chairman Bernanke’s letter saying the bank will ‘act as needed’ cheered the crowd and no doubt contributed greatly to the rebound.
Our Trend Tracking Indexes (TTIs) recovered as well and are hugging their long term trend lines as follows:
Domestic TTI: +2.46%
International TTI: +0.92%
Again, as previously announced, I will wait for further upside confirmation before moving back into the international markets. Let’s see if tomorrow brings some more excitement.