Sellers Exhausted

The QQQQ stopped just above its 50-day average and left a doji yesterday. A doji represents a day of indecision. Considering that there is still a favorable seasonal bias even if the rally that everyone expected didn't arrive (perhaps in fact because everyone expected it) and considering the fact that indices have moved from overbought to very oversold we have to entertain the idea that the market has delivered a near term bottom. Yesterday we indicated that follow through from Monday's breakdown would have to ensue before any reliable short set ups would emerge. Follow through lower did not arrive and though buying opportunities are still thin we should see an upward bias into the end of the year.