That buy signal was confirmed yesterday as the general market bounced back up and might come to test its recent highs.
Both the S&P500 and the NQ100 Futures now display a positive EV pattern.
The Cumulative Tick reversed also above its average Pink trend line.
However, we can see below that the small caps did not fully overperformed yesterday. This indicates that the shorts covering bounce reached a broad base of stocks and not just the small caps.
The New-Highs-New-Lows indicator displays a nice bounce and could easily reach the 300 level. This means that the small caps still have room to push higher.
Conclusions:
Yesterday's bounce is probably the start of an uptrend that could continue for a few days, at least until the S&P500 and the NQ100 test their most recent highs. I plan to sell covered calls on most of my stocks when we reach buying exhaustion, but in the meantime, I will be monitoring the list of stocks below. These are stocks that bounced with the market, but that do not display active buying. I also display the Pyramid data for those highlighted in Yellow.
