The anticipated short-term oversold bounce occurred today and has pushed all but one (IWM) of the indices we follow back into a neutral state. As I mentioned last week, extremely oversold conditions coupled with short-term seasonal winds were due to blow in Monday and Tuesday and should lead to a decent bounce. They blew in and yes, the indices advanced. That being the case we could see some follow through tomorrow, but I have a nasty feeling that we will see the recent lows in the not-so-distant future. Remember, the gap from 4/3 and 4/16 are not yet closed and unclosed gaps when approached again tend to weigh down the market. Time will tell.
If the market happens to retest the recent lows this would not be out of the ordinary.
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