To properly judge the staying power of the rally, we should put aside its spectacular nature and focus, simply, on impulse legs. If you didn’t know that today’s surge was one for the record books, and if someone had told you the chart shown consists of one-minute rather than hourly bars, you’d be less intimidated by what has occurred. We’d also know to hold the applause until such time as the surge exceeds a couple more external peaks, especially without pausing for breath. If we should see buyers exceed peaks #2 and #3 as effortlessly as they got past #1 today, we’d have more reason to infer that this bear rally is just getting started. Let’s kick back for now and see what the next couple of days brings.
