The oversold bounce that I wrote about this past Sunday (click here) seems to be working so far … when I look at the McClellan Summation Index, however, I’m not sure if the bounce will have staying power for the next several days as I originally thought.
McClellan Summation Index – Daily Chart
The last time we were at such an extreme/extended downtrend in the Index, we saw much more conviction in the short-squeeze higher. Month-end typically sees some sort of a markup in stock prices, so I remain unconvinced if we are going to see a 1-2 week bump/grind higher like I was originally hoping for.
The Summation Index should push higher and take out the 195-minute ATR level before the end of the week if this bounce has any real staying power.
Cheers … Leaf_West