Relieved? Stocks Aren't Out of the Bear's Woods Yet

NEW YORK (TheStreet) -- Friday saw the strong intraday turn to the upside in the stock indexes that I noted Thursday.

The DJIA closed up 185.66 points at 16553.93 and the S&P 500 had a better than 1% move higher, up 22.02 points to close at 1931.59. The Nasdaq was higher by 35.93 to close at 4370.89 and the Russell 2000 index was higher by 11.59 to finish at 1131.35.

Before everyone gets to giddy and declares the stock correction over, I will caution traders and investors once again that the higher move on Friday lacked the upside volume that is necessary to overcome the down days. The S&P 500 Trust Series ETF (SPY) volume came in at 112.5 million shares. The volume was higher than most up days, but substantially less than the down days.

Read More: Stock Market Today: Markets Bounce Back, Show Resilience

This is called volume accelerating on down days and decelerating on up days. Even with the strong move higher on Friday, the DJIA, S&P 500, and Russell 2000 are still in "Trend Bearish" territory.

The only condition that was alleviated in the markets on Friday was the oversold signal that I wrote about in Thursday's article.

On Friday, the Barclays 20+ Year Treasury Bond Fund (TLT) closed slightly down on the day after being up most of the day. The TLT is up 14% year to date. Again, this is a sign of a growth slowing. Most Wall Street pundits will tell you that it has been a flight to quality as the reason bonds have been so strong in 2014. That is flat-out wrong.

If you liked this article you might like

3 Tech Setups That Look Tantalizing

4 Nice Setups for a Monday Morning

Moved to a Large Bond Short; Kroger Goes on Sale: Best of Kass

How Have Bond Funds Done This Year?

Doubt Is OK; The Lay of the Land: Doug Kass' Views