The market had two positive days in a row. Even with an amazingly bad employment report this morning, the market trades higher today. Other indicators are improving elsewhere, and perhaps a stronger rally could occur.
Volatility in the US has exploded, throwing the markets into disarray. The intermediate-term trend is bearish, with extreme oversold conditions likely to produce sharp, but short-lived, rallies. We will look at some important indicators to see how oversold the markets are and what usually happens at times when markets sell off quickly.