Helene Meisler writes a daily technical analysis column and TheStreet Top Stocks. For more information, click here. Meisler spent more than a decade on the sell side as a market technician covering institutional accounts at various investment banks in New York City, including Cowen & Co. and Goldman Sachs. In addition she worked at Cargill in Minneapolis where she managed equity money for three years. She received her bachelor's degree in business from Pace University.
Tuesday's rally was different than last Thursday's in terms of participation and many other indicators -- and no one popped the big question.
Lets look at the statistics behind Tuesday’s rally compared with last week’s action to see how it stacks up.
As we head toward oversold, another rally should come before the week is over, but, wait, where's the panic?
If we go look at the market over the last 18 months, we can see despite the indexes going nowhere, there has been a lot of up and down -- that's been the trend in the market, so it's best to be flexible.
The Russell 2000, the Transports and the Bank Index haven’t gone anywhere for around nine months -- until this changes for the better, it’s unlikely the bulls can expect any sort of runaway train on the upside.
As in, when will enough people get back in the pool that we come back down again -- that's a tough question and what I'm trying to figure out.
After that oversold rally, we should come back down again, but knowing when the oversold rally is completed is the hard part.
Charts and indicators are no crystal balls, but they can help identify when the ingredients are here for a rally or a decline, and Wednesday looked a lot like it's part of a possible oversold bounce.
Sign up to get started or log in to see your watchlist.
Enter a symbol above to add it to your watchlist.
A confirmation email has been sent to the address provided during registration. Please click on the appropriate link to confirm your email address.