Remembering Tuesday's "Day One"?

Readers may have seen a lot of this chart lately. That's because it is evolving daily. FYI, the Nasdaq Composite chart has behaved similarly with the exception of not having tested its 50-day SMA. We see here that the S&P 50 after having tested that thin blue line put together a day of upward reversal on increased trading volume on Tuesday (Election Day). That was our "day one." After "day one", we look for a day of confirmation. That would be a second day in support of the upward move, again on increased trading volume.

The catch? Yes, there is always a catch. Technically, Wednesday, despite gapping higher on humongous trading volume, is considered part of the same move as Tuesday. For confirmation, we need to see some daylight between the day of reversal and the confirmation day. Unfortunately, as wonderful as Wednesday was for shareholders, it did not constitute a confirmation of an upward change in trend. Not that this confirmation won't still happen. Just understand that we do not have it just yet.

So far, Thursday morning has been a continuance of the same shift. A nice rally. Still not a confirmation.