Wall Street Bulls Salvage a Win

NEW YORK (TheStreet) -- At least the bulls salvaged a win on Friday after three days of market selloff.

The DJIA gained 44.50 points to close at 16491.31 while the S&P 500 gained 7 to close at 1877.86. Even the Nasdaq rose 21.29 at the close to finish at 4090.59. The Russell 2000, the big loser this year so far, finished up 6.92 at 1102.91.

So, are the indexes back and ready for more upside gains next week? Not so fast. Friday saw nothing more than a short-term oversold bounce. The trading volume on Friday was not bad but substantially less than Thursday's down volume.

Most of the Friday's gains were most noticeable in the momentum technology stocks. That is the sector where the short hedge funds have been hiding out and covering their short positions. Keep in mind that the majority of those momentum stocks are in Trend Bearish territory.

Apple (AAPL), Netflix (NFLX), Zillow (Z) and Amazon (AMZN) all closed to the upside. The volume was on the light side for those stocks.

Trading next week should be interesting. Of the four major indexes, not one has an oversold condition. If the momentum chasers had not turned this market green on Friday, Monday could have shown an oversold signal with a lower open. However, that is not the case so I am cautious and looking for more downside early next week to give that oversold signal that I am looking for.

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