8/8/24: Big up day for the markets, but volume not impressive. Gains were broad, with advancers beating decliners by a 4-1 ratio on the NYSE and by nearly 3-to-1 on the Nasdaq, The Investor S&P 500 Equal Weight ETF (RSP) jumped 1.8%, its best day of the year so far.
This is day-3 of an IBD “rally attempt”, which means we can officially have a Follow-Through-Day tomorrow given a 1% or more move and volume higher than today. That said, the decline was fast and steep and full of volume. I don’t know if this qualifies for a “vertical violation” example, but close. Those types of declines result in less successful rallies, so don’t go crazy. Bill would always walk around the team and make sure they were buying something on and FTD (which means you have to know it is an FTD while it is happening and you have to have your watch list ready).
Mike Webster puts more weight on the 21dma, so might want to be cautious until we can live above that. But we are also below the 50dma, so that comes first.
Here is a screenshot from a recent video. It compares current rally to 2003 and 2009. Looks like we went into correction a little earlier than the others. Time to start a new rally
