As a confirmation of my yesterday statement we had today continuation of the recovery rally. The DJI and Nasdaq 100 indexes are almost 13% from the bottom while the S&P 500 index moved up for more than 14% in two trading sessions. As you may see, in spite the horrible news about automakers the stock market gave us strong rally up. Why? - because of the huge volume surges that stopped decline and reversed the trend. As I mentioned yesterday huge volume during decline means that we have the bottom when the price is so low that it become attractive to the institutional investors who started to buy in big volumes by satisfying demand of the retail traders selling in panic.
Is this the end of the recession? - I do not know. I think it's too early to discuss it. In short term I would expect to see further move up - at least my technical analysis show this possibility. On the other hand 10% profit should make any trader to think about profit protection strategy (trailing stop for instance).
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