Big turn around in the cumulative ticks yesterday with a big rally from 2pm E.T. onwards to finish at close to +50,000 ticks. This I'm lead to believe coincided with the passing of the spending bill by Congress. Earlier on we also held the 1300 level on the ES. For the time being it would seem, things are back on track. If the sell off over the last week or so was really due to fear of the government shutting down, then the market should rally higher from here as people will perceive it to be below value. Certainly the relatively quick rejection of the 1300 area suggests that there are buyers willing to step in at this level. Quants are still pointing to intermediate bullish studies so I will look for evidence of this on the day time frame ie we should see the dip buyers return. Let's see how it plays out for Friday's session. Look for confirmation of the rally from techs and small caps which have been leading this market lower (relative weakness). It's a statistical fact that the market tends to perform much better when tech and small caps are leading (showing relative strength).
ps - GOOG did miss earnings so that will be a drag on tech.
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