Yesterday was an inside day for most of the major indexes which formed a Bullish Harami.  The Harami candle pattern indicates that at least for the day, the Bulls stepped in to arrest the selloff.

Volume was average, and did not come close to matching the selling volume from the prior day, but it was still decent volume at nearly 2.1 billion shares. The NASDAQ Comp held support above 4000 to close at 4031.52 at 68% of its daily range. The view below is not in your files because it is a view that I am experimenting with for the March seminar, but it clearly shows the Bulls stepping in to stop the downward movement temporarily.  With that said, the bounce was weak  based upon the number of Force Index 2 and 13 Day signals in the indexes.

Bulls will have to show more conviction to hold above critical support at 4000. Most analysts that I have read are leaning toward the Bearish side, but I prefer to see how the market plays out. The market rarely does what the majority of players thinks it will do. The question remains whether or not the Bullish Haramis in the indexes indicates absorption volume which mean that the bulls are taking a stand and absorbing the selling, or if yesterday was just a temporary respite before a further selloff.  Read Full Report