Sentimentrader.com showed some data looking at when the market closes at a 3 month low and then makes an 85% up issues day the next day, like it did Thursday. Out of 14 instances 13 were positive 2 weeks later. Obviously that indicates a bullish short-term bias. Several of those were significant lows lasting many months or years. Some of them rolled over to new lows within 2-3 weeks. Based on pattern logic, I believe this one will roll over to new lows in a few weeks or less.
As long as there is short-term overbought indications below the 1175 area on the S&P 500, then I will want to bet against a sustained rally. I don't feel like now is a great time to start betting against it though. I'd really like to see at least some bearish divergence on the 60 min chart indicators like stochastics, RSI, MACD, etc.
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