More Data On Yesterday's Rally
According to the good folks over at Sentimentrader.com, yesterday's rally showed that upside volume on the NYSE swamped downside volume by a lopsided 25-to-1.
The last time we saw that big of a skew in upside volume was August 20, 1982, just as equities were making their low before the start of a secular bull market.
Now, I am not saying we are about to embark on a multi-year bull rally like we did in the 80s, but this statistic is meaningful to the bulls nonetheless.
There have been only 7 other instances of this type of breadth action since 1950. When they looked at the ensuing 3-month period, in 7 out of 7 instances the SPX was higher by an average of +9.4%. Not too shabby.
Where is Eric from Philly now? Funny how the bears only rear their ugly heads when the market is going through a correction...