Barring an unexpected selloff this afternoon, this mornings rally above last week's highs on all stock indexes confirms that the intermediate term trend has changed to up. I have exited all short positions and taken one new position long the QLD. The VLE and Tides systems will need one more day to confirm the trend change; however, the % change today on increasing volume meets the criteria of an O'Neil follow-through day.
While some profits were given up with the wild swings of the last 8 weeks, the market should be in the mood to trend for a while now given it has gone nowhere fast of late. Nevertheless, as always if the systems indicate a trend change we will follow the trend.