Buying Thrust Off A Low

The snapback on Tuesday was notable because of the structure: 1) Stocks hit a 50-day low, 2) in a relatively healthy market, and the rebound was 3) the largest in more than 100 days and 4) there was broad participation.

More than 70% of volume flowed into advancing stocks that day. Nearly 90% was concentrated there on Tuesday, the first one-two positive breadth punch since early April.

Below, we can see how stocks responded after similar setups, and returns were consistently positive over the medium-term. See the June 5, 2019 report for more detail.