Stocks Recover Some Of Yesterday's Losses; Some Positive Divergences Are Showing Up, Internally.

It was a session devoted to the Fed and the minutes. The minutes caused some intraday volatility but by the end of the day all the indexes were in the green and had recovered some of the yesterday's selloff.

The SP 500 led the way with a .81% gain, followed by the DJIA and the Nasdaq both increasing around .65%. The big winner was the SP 600 leading with a 1.3% gain.

Volume was higher across the board and breadth was positive by around a 2-to-1 margin. This is a positive sign considering how much damage occured on Tuesday. However, the upside of today's rally and the breadth was much weaker than the downside yesterday.

Today was a good day, overall and the fact that the FOMC minutes did not throw us into the red and keep us there, I guess, can be taken as another positive. Another positive is the fact we are holding the recent lows from the last downtrend.

The divergence I am seeing in the internals refers to the amount of stocks making new 52-week lows. As the indexes flirted with the downtrend's lows yesterday I noticed that new 52-week lows on stocks did not expand. They actually contracted by a good amount. This is positive divergence and signals that the oversold bounce is still alive and could quite work itself out. For easy viewing go to Helene Meisler's article on realmoney.com.

However, the big trends are all down and the Nasdaq is still under the 200 dma so there is still NOTHING to get too excited about. I don't expect anything but a continued oversold bounce before the downside reaserts its ugly head.

Have a great night and I shall be on Investors Paradise tomorrow! Aloha!

New Swing Longs: CXG RNST--for more info go to Investors Paradise.

New Swing Shorts: MNST

Longs Outperforming Market: SMDI-131 SPSX-65 COGO-88 CBG-107 WIRE-159 CTCI BWP KDN IHS-36 HEIA-30 BGC-77 KEX-49 RSTI-36 CXW AKAM-96 SHFL HSR RATE-161 STRL-58 EAGL-60 TTES-51 KEYS-26 SMSI-71 CTXS-43 AOB PCLN ICTG-89 CBEY OPTV HWAY KNOL-133 LCC-127 PWR BGO-66 PKE IT-33 Q-54 SYKE SWW-43 GGI ARI AXE-33 DIS CVO-117 UVN ECLG-67 HNZ PAY-52 SMF-23 SBIT PROG MEND GISX CTEC NAII

Shorts Outperforming Market: NUE NVT BPFH CG

Stocks On Radar Screen: NTGR SYNT FCFS EGOV CAPB FORR