While capitulation is not always seen at market bottoms, it is usually seen at important ones. Yesterday's action just wasn't enough to call it capitulation. Today's rally was probably wave 2 of (5) in the Qs and wave ii of 3 of (5) in the Dow. This means we could see substantially more upside before the downtrend resumes. A move back up to 30 in the Qs is within the bounds of the dowtrend as well as 7860 in the Dow. If they move much above those levels then we would need to re-examine the situation.
It appeared yesterday that we were beginning the capitulation process, and even though there was no downside follow-through today, one day doesn't make a trend. As I said previously, we must be willing to withstand the sharp rallies while we ride out the downtrend. If there is evidence of a change in trend, then we can act accordingly, i.e. there is no reason to bail on short positions just yet based on trend following methodologies.
Today's action in gold was also still within the limits of the uptrend. That may change, but I will want to see more action to warrant exiting a profitable position in gold given a legitimate upside target higher that 1029.
Patience and discipline!