The market remains within the confines of a bear trend but is currently attempting its first real oversold rally since beginning its record-breaking crash in late February. I blogged Monday afternoon that I was starting to see some evidence of a potential reaction move off the lows, but I still didn’t view this as anything more than a bear market rally. So far, the real-time evidence favors this assessment.
The NASDAQ Composite Index got closer to its 20-dema today than the other Big Three major market indexes, but all three acted the same way as they reversed to closed in the lower part of their daily price ranges on higher volume. With the Fed going all-in earlier in the week and the government going all-in today with a $2 trillion relief spending bill, the largest spending bill of any kind in the nation’s history, investors saw fit to sell the news.
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