Bulls Regain Thier Position of Power

Yesterday when the indices sold off we expected to find a very bearish picture when going through scans. Instead what we saw were virtually no strong short set ups and a lot of stocks trading in neutral territory. Contrast these findings with our scans after Wednesday's session. Wednesday the market traded very strongly, reversing technical damage incurred by Tuesday's bear attack. Only this time the scans revealed a strong amount of participation in the move. We found a great deal of stocks setting up very nicely for a bullish move. This divergence should clue us in that the market is gearing up for another move higher. This is verified by the fact that money flow figures have been diverging against negative price patterns over the past few days.