With IBD calling Tuesday’s rise on higher volume a follow-through day since the recent bottom, they now designate the markets as being in a confirmed up-trend. My indicators are still a long way from saying that, as Tuesday was the 15th day of the current QQQ short term down-trend. IBD has been quite good at calling the trend change, so I will have to wait to see if they are correct this time. However, they always caution that while all up-trends begin with a follow-through day, not all follow-through days lead to a solid up-trend.
Only time will tell if this new base will hold. I remain almost 100% in cash. This weekly GMMA chart of the S&P 500 index still looks pretty ominous, with the shorter term averages (red) descending below the longer term averages (blue). Click on chart to enlarge.