The first day of a bounce can sometimes be a good indication of whether that
bounce is likely to succeed or roll over. I recently showed an example of
how a weak bounce (price-wise) can suggest a downside edge. That study is in
effect again tonight.
Breadth can also be important to watch. After seeing down volume account for
about 90% of total NYSE volume during Tuesday’s selloff, today’s bounce
higher only rebounded with about 56% up volume. I performed a study which
looked at other times the m
