From Carnage to Euphoria in the Nasdaq and Russell 2000 in Just Two Days

NEW YORK (TheStreet) -- A very impressive two-day rally off the lows for the indexes continued on Wednesday, fueled by the Federal Open Market Committee minutes that said nothing new.

The DJIA closed up 181 points at 16437.24 and the S&P 500 closed up 20.22 points to finish at 1872.18. The Nasdaq  closed up a whopping 70.91 points at 4183.90 and the Russell 2000 was up a generous 15.73 at 1159.96. This was all on top of a huge gain on Tuesday.

So after three down days in the indexes, we have had two huge up days. As I have mentioned on more than one occasion, this market will be volatile in 2014. You need to have a risk management process as a trader and investor to succeed.

And I will once again mention the volume. This has been a very big issue for me. Has anyone noticed that the volume, or lack thereof, was anemic on Tuesday and Wednesday, two huge up days? The volume is far less on green days than on red, down days.

It matters, folks.

The Nasdaq, which I mentioned as being trend bearish on Monday, is still trend bearish after this two-day up move. Yes, "trend" is a three-month or longer time frame for my algorithms. I will always change my stance when I am given the signal.

I have not seen a trend bullish signal. When I do, I will mention it in this column.

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