Market May Have Found a Bottom

NEW YORK (TheStreet) -- On Thursday, the market was searching for a bottom. Friday saw that bottom made.

All the indexes ripped higher out of the gate. The oversold condition, mentioned Thursday, in the Nasdaq and the Russell 2000 paved the way for the move higher.

The S&P 500 daily trading range is the setup for the algorithm machines and the hedge fund community. The S&P came within 10 points of its sell range on Friday and within 10 points of its buy range. Volatility on a daily basis is the theme.

The DJIA was up triple digits at one point and the other indexes were also up huge. A late-day selloff paired those gains. The Nasdaq and Russell 2000 went red again before closing slightly higher.

The DJIA closed at 1623.06, up 58.83 points. The S&P 500 closed up 8.57 points, at 1857.62. Even though the Nasdaq and Russell 2000 closed slightly green, those indexes were still well into oversold territory, according to certain internal indicators. We should expect a continued move higher next week in the indexes, based on these conditions.

This market is not for the faint of heart. This is a trader's market, pure and simple. Just when the bears were out in force this week, calling for market tops, we are nowhere near that type of signal after Friday's market rebound.

Based on internal signals, the trend remains bullish. As I have stated on different occasions, the trend is a three month or more month time frame.

The S&P 500 is not close to that bearish signal.  At one point Friday, the S&P 500 index came within 12 points of its all-time closing high. That is certainly not a bearish sign.

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