An initial gap higher was immediately sold but an afternoon surge helped the Dow, S&P and NASDAQ finish higher while greatly paring losses in the Russell 2000. Downside momentum seems to be waning and today’s mixed session is likely pointing to a bottom. In all likelihood that bottom will only be short-term but we will have to see how the action takes place.
Ideally, for the start of a move higher, we would like to see a gap down (or strong move lower in early trading) tomorrow which takes us near or below today’s lows which is again reversed in the afternoon. We will see what the overnight session brings.
Good night and good trading!
Reporting EPS 1/11/16 After the Close:
Reporting EPS 1/12/16 Pre-Market: