Stocks rallied today to end a 5 trading day losing streak. Leading the way were retailers with $WMT, $M, and $JCP soaring higher. $BIG, $Z, and $CMG also rocketed higher, erasing what had been a terrible start to 2015. Is today's action indicative of what we will see going forward? Is that V bottom coming?
There is no doubt that the market acted very bullishly today. The S&P 500 formed a double bottom at 1926, then went on to form a hammer reversal, and then finally made a bullish engulfing candle, in which it recovered yesterday’s losses. But are we clear for takeoff yet? Not quite.