Have the buyers returned, be cautious

We did see the follow-through we discussed on Monday for Tuesdays price movement. This does imply that buyers are present. As we discussed, if we look at the past movements in the downtrend in the S&P 500, the challenges been a lack of follow-through beyond 2 days in the S&P 500. This is why Wednesday Thursdays price action is going to be important. If buyers are here, we need to see their footprints with higher closes. Because of this lack of follow-through in the past, it's important to be cautious on the long side of this market.