In the last month, the S&P 500 fell 10.65% (including today’s rally). We revisited the support levels established by the flash drop and rebounded in a major way today.
This support line would provide evidence for a bottom here.
Was today really a bottom? Monday will tell us. I think we will see a follow-through day that will confirm that the rally is back on for now. Until it is confirmed, stay in cash with a buy list ready.
Here are some stocks to keep an eye on if the market keeps moving higher:
CRM - Salesforce.com
NDSN - Nordson Corporation
HIBB - Hibbett's Sports, Inc.
These stocks should only be bought if they break into new highs and the market is in a confirmed up-trend.
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