Above, the 3 LRS study of the daily bars of my little ETF basket. All looking fairly similar from a technical perspective and all below the lower LR30 channel, despite today's surge. My guess, and that's what it is, for the short term, is continued trading range behavior with the lower LR30 channel band acting at a temporary mean reversion target. We came close to kissing the channel goodbye yesterday in the Qs and IWM, while XLE and XLF are showing more resilience at the channel band. The technicals have a lot of work to do before I could get upbeat about a sustained rally, although I have noted several fellow bloggers calling yesterday's action the bear market bottom, punctuated by a VIX 48.
As a card carrying technical trader I'm ready to roll when the signals trigger, but the fundamentals just don't look that cheery, and you have to wonder what OTHER surprises are likely coming down the pipe. While the "rescue plan" may end the hemorrhaging, it's not likely to stop the bleeding and I don't want my trading account to become collateral damage to some really shoddy triage by our current admins.
Until the LR30 channel maintains a a level plane for several weeks, and/or begins to show upslope momentum, I'll continue to play the markets cautiously, trade small and be ready to hit the exits when the next revelation hits. Capital preservation is Job #1.