"Despite gains the past two days, the market remains in correction mode. That means stock purchases should be avoided until a major index triggers a follow-through day.
A follow-through involves a significant index gain in increased volume. It can't occur until the fourth day or later of an attempted rally.
An attempted rally begins with the first up day after the market goes into correction. The count continues as long as the index doesn't undercut the prior low.
The past two days of gains, therefore, constitute a rally attempt"
IBD today quote
Wednesday, August 19, 2009
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