Where have these buyers been, and what were they waiting for? That's what I always feel is the case when we have these oversold rallies.
Now, there have been some buyers the whole time in the commodities sector. Just keep watching Freeport McMoRan (FCX) , which is making the breakout of all breakouts. (Here's a technical look at that, from Bruce Kamich).
Then there's the reversion to FANG -- Action Alerts PLUS holding Facebook (FB) , Trifecta Stocks name Amazon (AMZN) , Netflix (NFLX) and Google parent Alphabet (GOOGL) -- that matters. They've been drifting, drifting, drifting -- and all of a sudden, they explode to the upside.
I also have been waiting for the industrials to come back to life, given what we have seen from Freeport. That's a positive, and it is good to see that the banks can rally on a few basis point move up in interest rates.
What's most amazing? The rally has nothing to do with earnings. People aren't too excited about Toll Brothers (TOL) -- peak housing, blah blah blah -- there's nothing to write home about, other than scathing letters, on this Coty (COTY) call and Medtronic (MDT) , such an important company, disappointing for all to see.
A rally based on what?
Nothing more than what the selloff was based on, except the technicians that have been looking for rollovers might be disappointed.